ShadyZ Corporation Uses the Unit-Of-Production Method to Estimate Depreciation

question 76

Multiple Choice

ShadyZ Corporation uses the unit-of-production method to estimate depreciation.A new asset is purchased for $18,000 that will produce an estimated 100,000 units over its useful life.Estimated residual value is $2,000.What is the depreciation rate per unit?

• A)$1.60
• B)$1.80
• C)$0.16
• D)$0.18

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Definitions:

Fahrenheit Degrees

A temperature scale where the boiling point of water is 212 degrees and the freezing point is 32 degrees.

Correlation Coefficient

Represented by r, it is a number between −1 and 1, inclusive, that is used to judge how closely a line fits the data.

Median

The middle value in a data set when the values are arranged in ascending or descending order.

Discretionary Expense

Non-essential spending or expenses that an individual chooses to make, which can be cut without impacting their ability to cover basic living costs.