On January 1, 2016, Margo Company acquired machinery at a cost of $160,000. This machinery was being depreciated by the double-declining-balance method over an estimated life of five years with no salvage value. At the beginning of 2018, Margo changed to and could justify straight-line depreciation. Margo's tax rate is 30 percent. What is the amount of depreciation expense to be included in 2018
net income?
A) $7,200
B) $24,000
C) $19,200
D) $38,400
C
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Factors that reflect the ability of a business to pay its debts and earn a reasonable amount of income are referred to as solvency and profitability
a. True b. False Indicate whether the statement is true or false
In general, FASB standards concerning property, plant, and equipment are similar to the international accounting standards, with two important differences
a. True b. False Indicate whether the statement is true or false
The marketing manager at Little Red Architects, a firm that specializes in the design of school buildings, discovered a glitch in the software that the firm uses. As a result, some of its most recent projects will come in over budget. In the context of SWOT analysis, a discussion of this would be included under ________.
A. strategies B. opportunities C. threats D. weaknesses E. strengths
Which condition would result in invalidating an application of break-even analysis?
A) The variable cost to produce a unit is less than one percent of the fixed cost to run the plant. B) The purchasing department both offers quantity discounts to customers and receives quantity discounts from suppliers. C) The variable cost to produce a unit is within one percent of the sale price. D) The labor to manufacture the item is free.