A Factory Machine Was Purchased for $150,000 on January 1

question 152

Multiple Choice

A factory machine was purchased for $150,000 on January 1, 2014. It was estimated that it would have a $30,000 residual value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2014. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2014 would be

• A) $15,000.
• B) $24,000.
• C) $30,000.
• D) $12,000.

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Definitions:

Instrumental Aggression

Aggressive behavior used as a means to achieve a goal or gain something of value, rather than for the sake of aggression itself.

Verbal Aggression

involves expressing negative feelings or thoughts through words to attack or abuse someone else.

Psychopathic

Pertaining to a personality disorder characterized by persistent antisocial behavior, impaired empathy, and bold, disinhibited, and egotistical traits.

Undercontrolled

Describes a lack of restraint or an inability to regulate one’s emotions, impulses, or behaviors effectively.