Find the First Year's Depreciation, Using the Double-Declining-Balance Method

question 35

Multiple Choice

Find the first year's depreciation, using the double-declining-balance method. Round to the nearest dollar.
-Cost: $3,400
Est. life: 6 years
Est. scrap: $800

• A)$433
• B)$867
• C)$567
• D)$1,133

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Definitions:

Availability Heuristic

The availability heuristic is a cognitive bias that involves making judgments about the likelihood of events based on how easily examples come to mind.

Functional Fixedness

A tendency to think of things based on their usual functions, which may make it harder to solve a problem.

Framing

The way information is presented or worded, which can significantly affect decisions and judgments.

Insight

The capacity to gain an accurate and deep understanding of someone or something, often suddenly and intuitively.