If the Life Span of a Piece of Equipment Is

question 67

Multiple Choice

If the life span of a piece of equipment is 10 years and its current cost is $400,000, what is the straight- line depreciation allowance each year?

• A)$40,000
• B)$400
• C)$4,000
• D)$400,000

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Definitions:

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used.

Problem-Solving Barrier

Refers to any obstacle, either internal or external, that impedes the process of finding solutions to a problem, including cognitive biases, lack of resources, or inadequate information.

Evolutionary Theorists

Scholars and scientists who study how evolutionary theory, which posits that species change over time due to natural selection and genetic variation, applies to various phenomena.

Natural Selection

A process in biology where organisms with traits that better enable them to adapt to their environment have a greater chance of surviving and reproducing.