Use the Following Information for Questions

question 21

Multiple Choice

Use the following information for questions.
On January 1, 2017, Flowers Unlimited purchased a new delivery van. The van cost $35,000 with an estimated life of 5 years and $5,000 residual value. Double diminishing-balance depreciation will be used.
-What is the depreciation expense for calendar 2017?

• A) $ 3,000
• B) $ 6,000
• C) $12,000
• D) $14,000

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Definitions:

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the variables being studied.

Type I Error

A Type I Error occurs when a true null hypothesis is incorrectly rejected, often referred to as a "false positive."

Type II Error

A statistical error made when failing to reject a false null hypothesis, also known as a false negative.

Null Hypothesis

is a default hypothesis that there is no significant difference or effect.