Orange Corp

question 30

Multiple Choice

Orange Corp.constructed a machine at a total cost of $70 million.Construction was completed at the end of 2012 and the machine was placed in service at the beginning of 2013.The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method.The residual value is expected to be $4 million.At the beginning of 2016,Orange decided to change to the straight-line method.Ignoring income taxes,what will be Orange's depreciation expense for 2016?

• A)$4.8 million.
• B)$5.4 million.
• C)$6.6 million.
• D)$9.4 million.

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Definitions:

Active Accounts

Refers to accounts that are currently in use or operation, especially in the context of banking or financial services.

Statistically Significant

A measure indicating that the likelihood of an observed effect in a dataset is not due to chance, typically determined by a p-value.

Multiple Regression

A statistical technique used to model and analyze the relationships between a dependent variable and two or more independent variables.

Simple Linear Regression

A statistical method that models the relationship between two variables by fitting a linear equation to observed data.