A Machine with a Cost of $120,000 Has an Estimated

question 146

Multiple Choice

A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

• A) $ 5,000
• B) $35,000
• C) $21,000
• D) $45,000

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Definitions:

Agricultural Development

The process and strategies aimed at improving the economy and living standards through increased productivity, efficiency, and sustainability in farming and related agricultural activities.

Dependence

A condition where an entity relies on another for support, sustenance, or survival.

Modernization Theory

A theory suggesting that traditional societies will develop economically and socially to adopt the characteristics of industrialized societies through processes like technological innovation.

Underdeveloped Countries

describes countries with low levels of industrialization, inadequate infrastructural facilities, and a generally low standard of living.