Pearson Company Bought a Machine on January 1, 2022

question 216

Multiple Choice

Pearson Company bought a machine on January 1, 2022.The machine cost $180,000 and had an expected salvage value of $30,000.The life of the machine was estimated to be 5 years.The depreciation expense using the straight-line method of depreciation is

• A)$50,000.
• B)$36,000.
• C)$30,000.
• D)none of these answer choices are correct.

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Definitions:

Lorenz Curve

A graphical representation used in economics to show the distribution of income or wealth within a society, illustrating levels of inequality.

Personal Distribution

The distribution of income and wealth among individuals and households in an economy.

Gini Ratio

An index that quantifies the disparity in income distribution among a population, where 0 signifies complete equality and 1 denotes complete disparity.

Income Distribution

The way in which total income is shared among the population or different groups within a society.