[The Following Information Applies to the Questions Displayed Below

question 93

Multiple Choice

[The following information applies to the questions displayed below.]

Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $374,000; Building, $1,100,000 and Equipment, $726,000.

-Assume that Harding uses the units-of-production method when depreciating its equipment.Harding estimates that the purchased equipment will produce 1,000,000 units over its 5-year useful life and has a salvage value of $34,000.Harding produced 265,000 units with the equipment by the end of the first year of purchase.Which amount below is closest to the amount Harding will record for depreciation expense for the equipment in the first year?

• A)$193,450
• B)$125,200
• C)$157,145
• D)$165,890

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Definitions:

Brand B

A placeholder name often used in studies or scenarios to represent a hypothetical or specific secondary brand for comparative purposes.

Confidence Interval

A range of numerical values, sourced from statistics of a sample, designed to capture the value of an elusive population parameter.

Burning Times

A term that could refer to the duration or rate at which something burns, though context is needed for a precise definition.

Confidence Interval

An estimated range of values calculated from a given set of sample data that is likely to include the true population parameter.