Decorama Corp

question 33

Multiple Choice

Decorama Corp.bought a delivery van for $65,000 with a estimated residual value of $6,000.The van is expected to be used for the next 10 years.The company estimates it will be used to drive a total of 225,000,000 km (30,000 km in the first year,25,000 in the second,third and fourth years and 20,000 in the next six years. What would be the amount of depreciation expense in year 2 using the units-of-production method?

• A)$6,500.00
• B)$5,900.00
• C)$10,400.00
• D)$6,555.55

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Definitions:

Miscarriage

The spontaneous loss of a fetus before it is viable, typically before the 20th week of pregnancy.

Cognitive Development

The process by which an individual's ability to think, process, and understand their environment progresses throughout life.

Teratogens

Agents or factors that can cause malformation or defects in an embryo or fetus during pregnancy.

Opiates

A class of drugs derived from opium, used to relieve pain but can also lead to dependency and addiction.