Lorenzo Corporation Purchased Equipment on January 1,2019 for $600,000

question 36

Multiple Choice

Lorenzo Corporation purchased equipment on January 1,2019 for $600,000.The equipment had an estimated useful life of 5 years and an estimated salvage value of $60,000.After using the equipment for 2 years,the company determined that the equipment could be used for an additional 6 years and have a salvage value of $8,000.Assuming Lorenzo Corporation uses straight-line depreciation,compute depreciation expense for the year ending December 31,2021.(Round your final answer to the nearest dollar. )

• A)$216,000
• B)$64,000
• C)$62,667
• D)$108,000

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Definitions:

Population Variances

A measure of the dispersion or spread of the entirety of data points in a population.

Student-t

A distribution that looks similar to the normal distribution but has thicker tails, used especially in scenarios of small sample sizes.

Confidence Interval

A tract of values derived by statistical analysis of samples, thought to potentially include the value of a population parameter not yet known.

Sample Variances

A measure of dispersion calculated from a sample of a population, representing the average of the squared deviations from the sample mean.