Francisco Owns a Machine That It Purchased on July 1

question 25

Multiple Choice

Francisco owns a machine that it purchased on July 1, 2010 for $600,000. The machine had an estimated useful life of 8 years and an estimated residual value of $10,000. The company uses straight-line depreciation and records monthly depreciation. The machine was sold on December 31, 2015 for $350,000. What was the depreciation expense for 2010?

• A)$30,729
• B)$36,875
• C)$73,750
• D)$75,000

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Definitions:

Null Hypothesis

A statement in research that posits there is no difference or relationship between certain variables, testing against an alternative hypothesis.

Predicts Direction

Indicates whether a relationship between two variables is positive or negative, without specifying strength or statistical significance.

One-tailed

Refers to a type of statistical test in which the alternative hypothesis specifies a direction of the expected difference or relationship.

Indirect Correlation

A negative correlation where the values of variables move in opposite directions.