Multiple Choice
On January 1, 2016, Margo Company acquired machinery at a cost of $160,000. This machinery was being depreciated by the double-declining-balance method over an estimated life of five years with no salvage value. At the beginning of 2018, Margo changed to and could justify straight-line depreciation. Margo's tax rate is 30 percent. What is the amount of depreciation expense to be included in 2018 net income?
A) $7,200
B) $24,000
C) $19,200
D) $38,400
Correct Answer:
Verified
Correct Answer:
Verified
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