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Cincinnati Food Supply Co. is a major supplier to Kraft Foods. On January 1 of the current year they purchased a

Cincinnati Food Supply Co. is a major supplier to Kraft Foods. On January 1 of the current year they purchased a

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cincinnati Food Supply Co. is a major supplier to Kraft Foods. On January 1 of the current year they purchased a new food packaging machine. Below are data related the machine purchased. Cost $125,000 Salvage Value $5,000 Useful life 10 years Total production capability 120, 000 units Year 1 units produced 14,000 units Year 2 units produced 12, 500 units Using the straight-line depreciation method, compute depreciation expense for year 1. Group of answer choices: A. $16,800 B. $15,000 C. $ 17,500 D. $12, 500 E. $12,000
Transcribed Image Text:Cincinnati Food Supply Co. is a major supplier to Kraft Foods. On January 1 of the current year they purchased a new food packaging machine. Below are data related the machine purchased. Cost $125,000 Salvage Value $5,000 Useful life 10 years Total production capability 120, 000 units Year 1 units produced 14,000 units Year 2 units produced 12, 500 units Using the straight-line depreciation method, compute depreciation expense for year 1. Group of answer choices: A. $16,800 B. $15,000 C. $ 17,500 D. $12, 500 E. $12,000
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