A high rate of inventory turnover indicates difficulty in selling inventory

Machinery was purchased for $85,000. Freight charges amounted to $3,500 and there was a cost of $10,000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $15,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be

a. $19,700 b. $16,700 c. $14,300 d. $14,000

An especially effective promotional tool when a product concept is new or has a very small market share is known as _____.

A. sponsorship B. sweepstakes C. product sampling D. contests E. product tie-ins