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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.