Henry Tax Planning Service Bought Production Equipment for $9,600 on January

question 16

Multiple Choice

Henry Tax Planning Service bought production equipment for $9,600 on January 1, 2015. It has an estimated useful life of 5 years and zero residual value. Henry uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month. As of June 30, 2015, the book value of this equipment shown on Henry's balance sheet will be:

• A)$8,640.
• B)$9,600.
• C)$10,560.
• D)$9,760.

---

Definitions:

Poisson Distribution

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

Probability Of Occurrence

The likelihood that a specific event will happen, often expressed as a number between 0 and 1.

Span Of Time

Span of time refers to the duration or length of a period between two points in time.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events happening in a fixed interval of time or space, assuming these events happen with a known constant rate and independently of the time since the last event.