On 1 January 2018, a New Motor Vehicle with a Useful

question 9

Multiple Choice

On 1 January 2018, a new motor vehicle with a useful life of four years and an estimated trade-in value of $12 000 was purchased by a business for $54 000. The straight-line method is employed and the financial year ends on 31 December. What was the depreciation expense for year ended 31 December 2019?

• A) $5 250
• B) $10 500
• C) $13 500
• D) None of the above

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Definitions:

Common Causes

Natural variations in a process, which are constant and inherent in the system over time, as opposed to special causes that are unusual or not part of the process.

Special Causes

Unusual events or circumstances that can cause variations in a process or system, distinguishing them from common, everyday variations.

Common Causes

Underlying factors or conditions that consistently contribute to a problem, issue, or variability in a process.

Process Capability Analysis

A statistical method used to assess the ability of a process to produce outputs within predetermined specifications.