Writing Assignment - Directions The Koplic Manufacturing Company purchases laser
ID: 2447100 • Letter: W
Question
Writing Assignment - Directions
The Koplic Manufacturing Company purchases laser equipment for $250,000.
The estimated service life for the machine is 5 years and the anticipated residual value is $45,000.
The machine is disposed of after 5 years.
The units produced by the machine are:
Year
Units
1
32,000
2
24,000
3
12,000
4
18,000
5
16,000
Assess the depreciation of the equipment using units-of-production method and the double-declining balance method.
Compare and contrast the depreciation produced by the two methods.
Write a two-page report.
Year
Units
1
32,000
2
24,000
3
12,000
4
18,000
5
16,000
Explanation / Answer
ANSWER:
First, the variance of t with a small degree of freedom is larger than a t with a large degree of freedom, which is larger than for a Z. This explains why the probabilities in Questions 65, 66, and 68 increases. Second, when the sample size is large, the degrees of freedom of t are large; and that the t distribution and the standard normal distribution are practically indistinguishable. This explains why the probabilities in Questions 66 and 68 are close.
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