Orange Corp

question 18

Multiple Choice

Orange Corp. constructed a machine at a total cost of $70 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value is expected to be $4 million. At the beginning of 2018, Orange decided to change to the straight-line method. Ignoring income taxes, what will be Orange's depreciation expense for 2018?

• A) $4.8 million.
• B) $5.4 million.
• C) $6.6 million.
• D) $9.4 million.

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Definitions:

Eliminating Stress

The process of reducing or removing factors that cause mental, emotional, or physical strain.

Lifestyle Adjustment

Changes made to one's way of living to improve personal well-being, adapt to new circumstances, or achieve specific goals.

Attitude Adjustment

The process of changing one’s mindset or perspective, often to become more positive or receptive to new ideas.

Ego Integrity

A sense of wholeness and satisfaction with life's achievements, part of psychological maturity, especially in later life.