A Machine Has a Cost of $24,000, a Residual Value

question 46

Multiple Choice

A machine has a cost of $24,000, a residual value of $6,000, and an estimated three-year life. If depreciation in the second year was $2,000, which depreciation method was used?

• A) straight-line
• B) double declining-balance
• C) units of production
• D) cannot tell from information given

---

Definitions:

Bargaining Zone

The range or area within which an agreement is satisfactory to both parties involved in negotiation, typically between employer and employee or buyer and seller.

Wildcat Strike

A wildcat strike occurs when workers suddenly go on strike, without the authorization (presumably) of the striker’s union and while a binding labor agreement is still in effect.

Binding Labor Agreement

A legally enforceable contract between a labor union and an employer that specifies the terms of employment and worker rights.

Formal Grievance Systems

Institutionalized processes allowing employees to file complaints or disputes for formal review and resolution.