Underwood Company Purchased a Machine on January 2,2013,for $1,000,000

question 70

Multiple Choice

Underwood Company purchased a machine on January 2,2013,for $1,000,000.The machine has an estimated useful life of five years and a salvage value of $100,000.Depreciation was computed by the 150% declining-balance method.The accumulated depreciation balance at December 31,2014,should be

• A) $360,000.
• B) $459,000.
• C) $490,000.
• D) $510,000.

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Definitions:

Time Horizon

The length of time over which an investment is expected to be held or a financial goal is to be achieved.

Standard Deviation

A measure of the dispersion or variability in a dataset, commonly used in finance to assess the volatility of an asset's returns over time.

Volatility

is a statistical measure of the dispersion of returns for a given security or market index, often used as a measure of risk.

Normal Distribution

A probability distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.