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scoundrel [369]
3 years ago
5

On January 1, 2019, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $1,000 for transportation and insta

llation. The expected useful life of the machine is 6 years and the residual value is $5,000. How much is the annual depreciation expense, assuming use of the straight-line depreciation method?
A. $6,100.
B. $5,950.
C. $5,750.
D. $6,000
Business
1 answer:
ruslelena [56]3 years ago
7 0

Answer:

D. $6,000

Explanation:

The book value of a new asset includes the purchase price and other related costs that make it ready for use. For Woodstock company, the book value of the new machine will be the buying price of 40,000 plus 1000 transport costs.

Book value = $41,000

The straight-line depreciation method charges equal amounts throughout the life of the asset.

The depreciable amount = asset value - salvage value

=$41,000 - $5000

=$36,000

The depreciation rate = 1/6 x 100

=16.66 %

Annual depreciation = 16.66% x $36,000

=16.66/100 x $36,000

=0.16667 x $36,000

=$6,000

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Answer:

The Answer is D: Nominal group technique

Explanation:

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What term describes the situation where an employer changes group plan coverage to another insurer, and all employees eligible f
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Turner, a successful executive, is negotiating a compensation plan with his potential employer. The employer has offered to pay
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Answer:

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