Scandsia Ltd

question 45

Multiple Choice

Scandsia Ltd. owns a machine that it purchased on Jan 1, 2019 for $750,000. The machine had an estimated useful life of 5 years and an estimated residual value of $50,000. The company uses straight-line depreciation and records monthly depreciation. The machine was sold on December 31, 2022 for $200,000. What is the carrying value (net book value) at the date of sale?

• A)$10,000
• B)$150,000
• C)$190,000
• D)$560,000

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Definitions:

Interaction Effect

The phenomenon where the effect of one independent variable on the dependent variable differs depending on the level of another independent variable.

Dependent Variable

The variable in an experiment that is measured or observed to assess the effect of the independent variable.

Factorial Research Design

A study design that allows researchers to examine the effects of two or more independent variables simultaneously on dependent variables.

Main Effects

Refers to the individual impact of an independent variable on a dependent variable in an experiment or study.