A Fleet of Limousines Purchased by Hurst Industries Is Expected

question 33

Multiple Choice

A fleet of limousines purchased by Hurst Industries is expected to last 5 years. The purchase price was $1,101,406. Shipping costs were $24,230 and initial setup charges were $37,447. The trade-in value is $77,098. Using the sum-of-the-years' digits depreciation method, calculate the accumulated depreciation at the end of year 2.

• A) $651,591
• B) $511,492
• C) $289,596
• D) $868,788

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Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple administrations under the same conditions.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical construct or concept it is intended to assess.

Face Validity

The degree to which a measurement device appears to accurately measure a variable.

Criterion Validity

The extent to which a measure is correlated with, or predictive of, an outcome of interest, often assessed through correlations with other known indicators.