Machinery After Two Years Worth of Depreciation Has an Opening

question 69

True/False

Machinery after two years worth of depreciation has an opening book value of $6,400.At the beginning of the third year,the predicted number of years remaining in its useful life changes from three years to four years and its estimated residual value changes from the original $1,000 to $400.The revised annual depreciation using the straight-line method is $1,500.

---

Definitions:

Voltage Difference

The difference in electric potential between two points in an electric circuit, driving the flow of current.

Farad

The SI unit of capacitance, describing a capacitor's ability to store charge per unit of electric potential difference, named after Michael Faraday.

Nonpolarized Capacitors

Capacitors that can be connected to either polarity of voltage. Generally used in alternating current circuits.

AC

Alternating Current, a type of electrical current where the current's direction and amplitude vary cyclically.