A Machine with a Cost of $120,000 Has an Estimated

question 116

Multiple Choice

A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-output method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

• A) $5,000
• B) $35,000
• C) $21,000
• D) $45,000

---

Definitions:

Probability Calculus

A set of rules for determining the probability of compound events.

Volcanic Eruption

The process in which magma, ash, and gases are expelled from a volcano's vent, often dramatically affecting the surrounding environment.

Probability Calculus

A branch of mathematics that deals with calculating the likelihood of diverse outcomes, based on known parameters or prior probabilities.

Disjunction

A logical operation yielding a true statement when at least one of its component statements is true.