On January 2, 2012 McNally's Extra Corporation Acquired Equipment for $120,000

question 67

Multiple Choice

On January 2, 2012 McNally's Extra Corporation acquired equipment for $120,000. The estimated life of the equipment is 5 years or 20,000 hours. The estimated residual value is $20,000. What is the amount of depreciation expense for 2014, if McNally's Extra Corporation uses the asset 4,000 hours and uses the units-of-production method of depreciation?

• A) $20,000
• B) $24,000
• C) $25,000
• D) $30,000

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Definitions:

Random Assignment

A research method used to assign participants to different groups in an experiment in a way that each participant has an equal chance of being placed in any group.

Independent Variable(s)

are the variables in an experiment that are manipulated to test their effect on dependent variables, allowing researchers to determine cause-and-effect relationships.

Internal Validity

The extent to which changes in the independent variable caused changes in the dependent variable.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.