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The Table Below Shows Hypothetical Per- Minute Cell Phone Charges

question 30

Multiple Choice

The table below shows hypothetical per- minute cell phone charges for "pay- and- talk" service over several years. 20050.5520060.5020070.4020080.3520090.25 TABLE 2- 2\begin{array}{l}\begin{array} { | l | l | } \hline 2005 & 0.55 \\\hline 2006 & 0.50 \\\hline 2007 & 0.40 \\\hline 2008 & 0.35 \\\hline 2009 & 0.25 \\\hline\end{array}\\\text { TABLE 2- } 2\end{array}
-Refer to Table 2- 2. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2008 is calculated as follows:

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Definitions:

Accumulated Depreciation

Accumulated depreciation represents the total depreciation expense assigned to a fixed asset over its useful life, reducing its book value.

Investments

Assets purchased with the expectation that they will generate income or appreciate in the future.

Owner's Equity

Refers to the residual interest in the assets of a company after deducting liabilities, representing the ownership interest.

Property Plant and Equipment

Durable physical assets that are utilized in running a business and are not meant to be sold.

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