Maintenance that pertains to the general unkeep of the property, recurs on a regular basis, and requires minimal training is referred to as?

Adding depreciation expense to net profit equals:

A) cash flows from operations. B) total revenues. C) the depreciation tax shield. D) profit before tax.

Bates Company purchased equipment on January 1, 2006, at a total invoice cost of $600,000. The equipment has an estimated salvage value of $15,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2007, if the straight-line method of depreciation is used?

a. $120,000 b. $240,000 c. $117,000 d. $234,000