The Amount of Depreciation Expense for a Fixed Asset Costing

question 227

True/False

The amount of depreciation expense for a fixed asset costing $95,000, with an estimated residual value of $5,000 and a useful life of 5 years or 20,000 operating hours, is $21,375 by the units-of-output method during a period when the asset was used for 4,500 hours.

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Definitions:

Random Variable

A variable whose values depend on outcomes of a probabilistic phenomenon.

Normally Distributed

Describes a type of continuous probability distribution for a real-valued random variable where the data tends to form a symmetrical bell curve.

Median

The middle value in a data set, arranging the data in ascending order, or the average of the two middle values if the dataset is even.

SAT Scores

SAT Scores are standardized test results used for college admissions in the United States, assessing mathematical, reading, and writing skills.