Use the Sum-Of-The-Years'-Digits Method of Depreciation

question 82

Multiple Choice

Use the sum-of-the-years'-digits method of depreciation. Round to the nearest dollar.
-Find the depreciation in the third year for a power generator which costs $25,000, has a life of 12
Years, and an estimated scrap value of $2,500.

• A)$961
• B)$3,205
• C)$962
• D)$2,885

---

Definitions:

Frequencies of Repairs

Frequencies of Repairs refer to the number of times repairs have been made within a specific period, indicating the maintenance needs or reliability of an item.

Automobile Manufacturer

A company engaged in the designing, production, marketing, and selling of motor vehicles.

Sample

A subset of individuals or observations selected from a larger population, used to infer or make predictions about the population.

Poisson Distribution

A probability distribution that measures the probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.