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:

Prolactin

A hormone produced by the pituitary gland that stimulates milk production in breastfeeding women and affects other bodily functions.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also known as the "love hormone" for its role in facilitating social bonding and trust.

Third Ventricle

A narrow fluid-filled cavity located in the middle of the brain, part of the ventricular system involved in the production and circulation of cerebrospinal fluid.

Hypopituitarism

A rare disorder in which the pituitary gland fails to produce one or more of its hormones, or not enough of them.