Norwood, Inc

question 183

Multiple Choice

Norwood, Inc.purchased a crane at a cost of $80,000.The crane has an estimated residual value of $5,000 and an estimated life of 8 years, or 12,500 hours of operation.The crane was purchased on January 1, 2016 and was used 2,700 hours in 2016 and 2,600 hours in 2017.
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-Refer to the information for Norwood, Inc. ​
Based on this information, what method of depreciation will produce themaximum depreciation expense in 2016?

• A) Straight-line
• B) Double-declining-balance
• C) Units-of-production
• D) All methods produce the same expense in 2016.

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Definitions:

Moderate Arousal

An optimal level of alertness and physical and mental activation that is conducive to effective, efficient performance on tasks.

Sport Psychologist

A professional who applies psychological principles to athletic activity and exercise to help athletes improve performance, cope with pressure, and recover from injuries.

Arousal Theory

A theory suggesting that people are motivated to maintain an optimal level of arousal, not too low or too high, for their best performance.

Sensation-Seekers

Individuals who have a strong desire for experiences that are thrilling, complex, varied, and intense, often embracing risks for the sake of such experiences.