A Company Is Depreciating a $1,000,000 Building Using a Straight-Line

question 21

Multiple Choice

A company is depreciating a $1,000,000 building using a straight-line rate of 5%.The building has an estimated residual value of $200,000.What would the amount of depreciation be in the first year using the straight-line method and the double-declining-balance method?
  Straight-line     Double-declining-balance

• A)$40,000         $80,000
• B)$40,000         $100,000
• C)$50,000         $80,000
• D)$50,000         $100,000

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Definitions:

Mean Playing Times

The average duration of play sessions across a defined set of games or activities, calculated by summing all individual playing times and dividing by the number of sessions.

Significance Level

A statistical measure that defines the threshold at which a hypothesis test's result is considered statistically significant, typically denoted as alpha (α).

Independent Random Samples

Samples drawn from a population in such a way that each individual sample is obtained independently and from the same distribution.

Confidence Interval

A range of values derived from sample data that estimates the range within which a population parameter is believed to lie with a certain level of confidence.