Equipment with a Cost of $640,000 Has an Estimated Salvage

question 62

Multiple Choice

Equipment with a cost of $640,000 has an estimated salvage value of $60,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,000 hours?

• A)$160,000.
• B)$175,000.
• C)$165,000.
• D)$145,000.

---

Definitions:

KSAs

An acronym for Knowledge, Skills, and Abilities; the set of qualifications and characteristics that enable a person to perform a specific job.

Input-Process-Output Model

A framework used to understand how groups transform inputs (resources like time and labor) through processes (activities and dynamics) to achieve outputs (results or products).

Systems Level

Pertains to the comprehensive, overarching view or analysis of the interconnected components that form a whole entity, often used in organizational or technical contexts.

I-P-O Model

Input-Process-Output Model, a framework used to understand the dynamics of teams and organizational behavior, focusing on inputs, processes, and outputs.