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5. A factory machine was purchased for $60,000 on January 1, 2010. It was estimated that it would have a $12,000 salvage value at the
5. A factory machine was purchased for $60,000 on January 1, 2010. It was estimated that it would have a $12,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. If the actual number of machine hours ran in 2010 was 4,000 hours and the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2010 would be:
$4,800. | |
$6,000. | |
$9,600. | |
$12,000. |
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