A Machine Has a Cost of $24,000, a Residual Value

question 46

Multiple Choice

A machine has a cost of $24,000, a residual value of $6,000, and an estimated three-year life. If depreciation in the second year was $2,000, which depreciation method was used?

• A) straight-line
• B) double declining-balance
• C) units of production
• D) cannot tell from information given

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Definitions:

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the understanding and use of language.

Long-Term Memory

A type of memory capable of storing information for an extended period, ranging from hours to a lifetime.

Primary Memory

Another term for short-term memory, referring to the capacity for holding a small amount of information in mind in an active, readily available state.

Working Memory

A cognitive system responsible for temporarily holding information available for processing and problem-solving.