Hendricks Construction Purchased a Crane on January 1, 2010, for $102,750

question 72

Multiple Choice

Hendricks Construction purchased a crane on January 1, 2010, for $102,750. At the time of purchase, the crane was estimated to have a life of six years and a residual value of $6,750. In 2012, Hendricks determined that the crane had a total useful life of seven years and a residual value of $4,500. If Hendricks uses the straight-line method of depreciation, what will be the depreciation expense for the crane in 2012?

• A) $16,000
• B) $13,250
• C) $9,464
• D) $8,000

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Definitions:

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention.

Unconditioned Response

An automatic, natural response to a stimulus that occurs without prior learning or conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

Unlearned Reaction

A natural, instinctive response to a stimulus that occurs without the need for prior learning or experience.