When Originally Purchased,a Vehicle Had an Estimated Useful Life of 8

question 116

Multiple Choice

When originally purchased,a vehicle had an estimated useful life of 8 years.The vehicle cost $25,000 and its estimated residual value is $3,000.After 3 years of straight-line depreciation,the asset's total estimated useful life was revised from 8 years to 5 years and there was no change in the estimated residual value.The Depreciation Expense in year 4 is:

• A)$6,875.
• B)$4,400.
• C)$4,125.
• D)$1,650.

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Definitions:

Test Statistic

A calculated value used to make a decision regarding a hypothesis test; it measures the degree of agreement between a sample data and the null hypothesis.

Sample Proportion

The ratio of members in a statistical sample that have a particular attribute to the total number of members in the sample.

Null Hypothesis

The null hypothesis is a statement used in statistics that proposes there is no significant difference or effect, serving as the starting point for hypothesis testing.

Alternative Hypothesis

A statistical hypothesis that proposes a difference or effect, contrasting the null hypothesis.