Question

On April 1, 2013, Vermin Co. purchased new machinery for $300,000. The machinery has an estimated useful life of five years, and depreciation is computed by the sum-of-the-years'-digits method. The accumulated depreciation on this machinery at March 31, 2015, should be:

a. $120,000.

b. $100,000.

c. $200,000.

d. $180,000.

Answer 1

The question deals with various financial and economic concepts such as investment risk, statistical probability, the money multiplier effect, and real estate valuation and equity.

Step-by-step explanation:

The question provided references various financial scenarios related to investments and the economy. For example, when discussing different investment options, the text highlights a first investmentwith the highest probability of loss and compares it to a third investment that has a lower probability of loss. These comparisons are central to understanding investment risk and return.

In another part, the question mentions calculating the probability of an individual having a certain amount of change, pointing to statistical methods used in finance or economics. Lastly, the mention of the total quantity of money generated in an economy alludes to the concept of the money multiplier effect in macroeconomics.

Another aspect tackles real estate value, equity, down payments, and bank loans, which falls into the realm of personal finance or real estate investment analysis.