Multiple Choice
On January 1, 2014, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $1,000 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $5,000. If Woodstock uses the straight-line depreciation method, which of the following statements is incorrect?
A) The annual depreciation expense is $6,000.
B) The December 31, 2014 book value was $35,000.
C) The December 31, 2016 accumulated depreciation balance was $18,000.
D) The December 31, 2015 book value was $24,000.
Correct Answer:
Verified
Correct Answer:
Verified
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