A factory machine was purchased for $375,000 on January 1, 2017. It was estimated that it would have a $75,000 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. The company ran the machine for 4,000 actual hours in 2017. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2017 would be

Select one:

a. $75,000.

b. $37,500.

c. $30,000.

d. $60,000.

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The cost of a purchased building includes all of the following except

Select one:

a. closing costs.

b. remodeling costs.

c. real estate broker's commission.

d. All of these are included.