A Factory Machine Was Purchased for $140,000 on January 1

question 37

Multiple Choice

A factory machine was purchased for $140,000 on January 1, 2022.It was estimated that it would have a $28,000 salvage 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.If the actual number of machine hours ran in 2022 was 4,000 hours and the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2022 would be

• A)$14,000.
• B)$22,400.
• C)$28,000.
• D)$11,200.

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Definitions:

Ethical Climate

describes the shared perceptions of what is ethically correct behavior and how ethical issues should be addressed within an organization or community.

Organization's Ethical Practices

Refers to the policies, standards, and behaviors that guide moral decisions and actions within a business entity.

Dynamic Environment

A constantly changing and evolving setting in which an organization operates, often characterized by unpredictable and rapid changes.

Financial Performance

The measure of an organization's profitability, revenue, expenses, and overall financial health.