On the First Day of the Year Mayo Resources Purchased

question 7

Multiple Choice

On the first day of the year Mayo Resources purchased a forklift truck for $12 000 which is to be depreciated by 25% a year. At the end of the first year:

• A) depreciation in the income statement is $3000 and the carrying value of the forklift in the balance sheet is $12 000.
• B) depreciation in the income statement is $3000 and the carrying value of the forklift in the balance sheet is $15 000.
• C) depreciation in the income statement is $3000 and the carrying value of the forklift in the balance sheet is $9000.
• D) depreciation in the income statement is $0 and the carrying value of the forklift in the balance sheet is $12 000.

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Definitions:

Standard Deviation

Standard deviation is a statistical measure that quantifies the dispersion or variability of a set of data points relative to their mean, indicating how spread out the data points are.

Scheduled Arrival Time

The pre-determined time at which a vehicle, such as an airplane or a bus, is expected to arrive at its designated stop or destination.

Scatterplot

A type of graph in statistics used to visualize the relationship between two quantitative variables, displaying individual data points as dots within a cartesian coordinate system.

Relationship

A connection or association between individuals, whether emotional, social, professional, or familial, shaped by interactions and mutual experiences.