Buggy Company Purchased Equipment on June 3, 2012, for $100,000

question 33

Multiple Choice

Buggy Company purchased equipment on June 3, 2012, for $100,000. The residual value is zero and the estimated life is 10 years or 42,550 hours. Compute depreciation expense for the year ending December 31, 2012, if the company uses the units-of-production method of depreciation and uses the equipment for 8,600 hours.

• A) $3,210
• B) $5,628
• C) $11,628
• D) $20,210

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Definitions:

Motivational Counseling

A client-centered, directive method for enhancing intrinsic motivation to change by exploring and resolving ambivalence.

Level 3

Typically denotes a stage in a classification system that often represents an intermediate or advanced category of proficiency, complexity, or difficulty.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, including activities undertaken while working, playing, carrying out household chores, traveling, and engaging in recreational pursuits.

Motivational Counseling

A client-centered counseling approach that aims to enhance an individual's motivation to change by exploring and resolving ambivalence.