What is the annual depreciation rate? On January 1, 20X1, Pinnatek Inc., which uses thestraight-line method, purchases a machine for$72,000 that it expects to last for 12 years;Pinnatek expects the machine to have a residualvalue of $6,000.What is the annual depreciation rate?a. 9.7%b. 11.5%c. 12.5%d. 6.25%e. 7.64%

Explanation of Straight-Line Depreciation Method: The straight-line depreciation method is an…

Answered: On January 1, 20X1, Pinnatek Inc.,…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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On January 1, 20X1, Pinnatek Inc., which uses the straight-line method, purchases a machine for $72,000 that it expects to last for 12 years; Pinnatek expects the machine to have a residual value of $6,000. What is the annual depreciation rate? a. 9.7% b. 11.5% c. 12.5% d. 6.25% e. 7.64%