Solved

Reliable Construction Company Bought a Backhoe for $100,000, Which It

Question 34

Multiple Choice

Reliable Construction Company bought a backhoe for $100,000, which it expects to be able to use for 20 years. Rather than showing an expense of $100,000 in the first year and no expense for the crane over the next 19 years, the company can report depreciation expenses of ________ per year in each of the next 20 years because that better matches the cost of the machine to the years it is used.


A) $500
B) $100,000
C) $10,000
D) $50,000
E) $5,000

Correct Answer:

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