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

question 137

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)$13,200.
• C)$12,000.
• D)$11,000.

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Definitions:

Short-Term Memory

The component of memory where small amounts of information can be stored for a short duration.

State-Dependent Memory

The phenomenon where information learned in a particular state of mind (e.g., happy, sad) is more easily recalled when in that same state of mind.

Effortful Processing

A type of encoding that requires attention and conscious effort to remember information.

Nonsense Syllables

A set of letters that do not form a recognizable word, used in memory and learning experiments.