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Jenkins, Inc Determine the Correct Amount of Depreciation to Expense for 2018

Question 53

Multiple Choice

Jenkins, Inc. builds custom machines for manufacturers using robotic equipment. In 2018, the company decided to change from straight-line to double-declining balance depreciation for its robotic equipment. It changed the life expectancy as follows:  Original cost of robotic equipment $2,800,000 Accumulated depreciation thru 2017860,000 Original life in years 8 Remaining life in years 4\begin{array} { | l | r | } \hline \text { Original cost of robotic equipment } & \$ 2,800,000 \\\hline \text { Accumulated depreciation thru } 2017 & 860,000 \\\hline \text { Original life in years } & 8 \\\hline \text { Remaining life in years } &4 \\\hline\end{array} Determine the correct amount of depreciation to expense for 2018.


A) $350,000
B) $485,000
C) $430,000
D) $970,000

Correct Answer:

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