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    Financial Accounting Study Set 28
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    Exam 9: Reporting and Analyzing Long-Lived Assets
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    A Machine That Was Purchased on January 1 for $45,000
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A Machine That Was Purchased on January 1 for $45,000

Question 14

Question 14

Multiple Choice

A machine that was purchased on January 1 for $45,000 has an estimated salvage value of $9,000. If the machine's depreciation rate is 20%, its annual depreciation is


A) $9,000.
B) $36,000.
C) $7,200.
D) $10,800.

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