A Machine with a Cost of $80,000 Has an Estimated

question 16

Multiple Choice

A machine with a cost of $80,000 has an estimated residual value of $5,000 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) $25,000
• C) $15,000
• D) $26,667

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Definitions:

Medical Assistant

A healthcare professional who assists physicians in clinics and medical offices, often handling administrative and clinical tasks.

CPE

Continuing Professional Education, activities that professionals engage in to develop skills and increase knowledge.

Examination Instruments

Tools or devices used by healthcare professionals to conduct physical or diagnostic examinations.