Roho Company Acquired Equipment on July 1,2013,for $200,000

question 119

Multiple Choice

Roho Company acquired equipment on July 1,2013,for $200,000.The residual value is $20,000 and the estimated life is 5 years or 40,000 hours.Compute the Depreciation Expense for the years ending December 31,2013 and December 31,2014 if Roho Company uses the double-declining-balance method of depreciation.

• A)$36,000 for 2013; $73,600 for 2014
• B)$40,000 for 2013; $64,000 for 2014
• C)$40,000 for 2013; $80,000 for 2014
• D)$64,000 for 2013; $40,000 for 2014

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Definitions:

Coefficient of Variation

A statistical measure of the dispersion of data points in a data set, relative to its mean, expressed as a percentage.

Standard Deviation

A measure of the dispersion or spread of a set of data points relative to its mean, indicating how spread out the data points are.

Measures of Variability

Statistical metrics that describe the spread or dispersion within a data set, including range, variance, and standard deviation.

Coefficient of Variation

A normalized measure of the dispersion of a probability distribution or frequency distribution, often used to compare the degree of variation from one data series to another.