Chambersburg Corp -Refer to the Information for Chambersburg Corp

question 53

Multiple Choice

Chambersburg Corp.
The following information is for Chambersburg Corp.for 2018 and 2017.Chambersburg uses the straight-line depreciation method.
$$\begin{array} { l r r } & \underline { \mathbf { 2 0 1 8 } } & \underline { \mathbf { 2 0 1 7 } } \\\text { Property, plant, and equipment } & \$ 250,000 & \$ 190,000 \\\text { Accumulated depreciation } & 100,000 & 85,000 \\ \text { Depreciation expense } & 62,500 & 47,500 \\\text { Net sales } & 1,000,000 & 900,000 \\\text { Average total assets }& 625,000 & 475,000\end{array}$$
-Refer to the information for Chambersburg Corp. ?
Using the 2018 data,what is the average life of Chambersburg's property,plant,and equipment (rounded to one decimal place) ?

• A)1.6 years
• B)2.5 years
• C)4.0 years
• D)10.0 years

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Definitions:

Stackelberg

Refers to a model of strategic interaction in oligopolistic markets where one leader firm moves first and the other firms follow.

Cournot

A model of duopoly in which two firms assume the output of the other, deciding their own production levels to maximize profit.

Sequential Game

A type of game theory model where players make decisions one after another, with each player's decision possibly affecting future decisions by themselves or others.

Simultaneous-Move Scenario

A situation in game theory where all players make their decisions or choose their strategies at the same time without knowledge of the others' choices.