40. If the asset is depreciated under the sum-of the-years'-digits method, the denominator of the depreciation rate would be a. 55 b. 20 c. 15 d. 5 41. If the asset is acquired on January 1, 2016, and is depreciated under the sum-of-the-years'-digits method, first-year depreciation (rounded) would be a. $81,667 b. $60,000 c. $49,000 d. $20,417 Under any GAAP depreciation method, the maximum depreciation permitted over the asset's life is... 42. a. $255,000 b. $250,000 c. $245,000 d. $200,000 Use the following information to answer Questions 43-45: A company purchases a machine that has an original cost of $11,500, transportation costs of $500, installation charges of $1,500, an estimated life of 4 years or 20,484 hours, and a residual value of $800. You are depreciating the machine for book purposes. 43. What is the depreciation rate (rounded) under the units of production method? a. $0.52 per hour b. $0.55 per hour c. $0.62 per hour d. $0.66 per hour If the machine is acquired on August 1 and is used 2,500 hours during the year, depreciation for the year under the units of production method is 44. ... a. $3,375 b. $3,175 c. $1,550 d. $625 Over the first 4 years, the machine is used for 18,000 hours. In Year 5, the machine is used for 3,000 hours. Under the units-of-production method, Year-5 depreciation is.. 45. a. $0 b. $1,540 c. $1,860 d. $2,484