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A machine with a cost of $105 000 has an estimated residual value of $5 000 and an estimated life of eight years or 10

A machine with a cost of $105 000 has an estimated residual value of $5 000 and an estimated life of eight years or 10 000 hours.

It is to be depreciated by the units-of-activity method.

What is the amount of depreciation for the second full year, during which the machine was used 6 000 hours?

$60,000

$75,000

$16,000

$5,000

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