At Midnight the Temperature Was -8°F

question 135

Multiple Choice

At midnight the temperature was -8°F. By noon, the temperature had risen by 18°F. What was the temperature at noon?

• A)10°F
• B)-26°F
• C)26°F
• D)-10°F

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Definitions:

Modified Accelerated Cost Recovery System

A tax depreciation system in the United States that allows for faster asset depreciation in the early years of asset life.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life, used for accounting and tax purposes.

Double Declining-Balance Depreciation

A method of accelerated depreciation which doubles the rate at which an asset’s book value depreciates compared to straight-line depreciation.

Annual Depreciation Expense

The portion of the cost of a fixed asset that is charged as an expense in a particular fiscal year, as a result of wear, tear, and obsolescence.