A Machine That Cost $72,000 Has an Estimated Residual Value

question 132

Multiple Choice

A machine that cost $72,000 has an estimated residual value of $6,000 and an estimated useful life of 5 years or 30,000 hours. Using the units-of-production method, the depreciation expense for the second year, during which the machine was used 5,000 hours, would be

• A) $14,400
• B) $11,000
• C) $13,200
• D) $12,000

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Definitions:

Physical Addiction

A condition in which the body becomes dependent on a substance, leading to withdrawal symptoms when the substance is not taken.

Psychological Dependence

A condition in which an individual feels a compulsive need to continue using a substance or engaging in a behavior due to emotional or psychological needs.

Herbal Supplements

Products made from plants or plant extracts intended for dietary or medicinal purposes, often used to improve health or treat conditions naturally.

Nicotine

A potent chemical found in tobacco plants that acts as a stimulant in small doses but can be harmful, leading to addiction and various health issues.