Lexis Company Purchased Equipment on January 1,2012 for $35,500

question 129

Multiple Choice

Lexis Company purchased equipment on January 1,2012 for $35,500.The estimated useful life of the equipment was 7 years and the estimated residual value was $4,000.After using the straight-line method of depreciation for 3 years,the estimated useful life was revised to 9 years on January 1,2015.How much is depreciation expense for 2015?

• A) $2,444
• B) $3,000
• C) $2,000
• D) $3,667

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Definitions:

Confidence Interval

A range of values, derived from the sample data, within which the true population parameter is expected to lie, at a given probability.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, often related to the number of independent observations in a data set minus any constraints.

F Statistic

A ratio derived from the analysis of variance (ANOVA) that compares the variance between group means to the variance within groups.

Automobile Factory

A facility specialized in the manufacturing and assembly of motor vehicles and related components.