On January 1, Year 1, Milton Manufacturing Company Purchased Equipment

question 81

Multiple Choice

On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $28,000. A total of $2,200 was paid for installation and testing. During the first year, Milton paid $3,300 for insurance on the equipment and another $610 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $4,400. During Year 1, the equipment produced 12,000 units. What is closest to the amount of depreciation for the year? (Do not round intermediate calculations.)

• A) $3,096
• B) $3,565
• C) $4,020
• D) $3,492

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Definitions:

Burning Fuels

The process of combusting chemical compounds like coal, oil, natural gas, or wood to release energy, often resulting in emissions that can impact air quality and climate.

Incarceration Rate

The number of individuals imprisoned within a country's prison system per 100,000 of the national population, often used as an indicator of the extent and nature of a country's approach to crime and punishment.

Ferguson Effect

Refers to the theory suggesting that increased scrutiny and criticism of police following high-profile incidents of police violence leads to a reduction in proactive policing and an increase in crime.

Homicide Rates

The frequency or number of homicides in a given population or area over a specified period of time.