A machine with a cost of $225,000 has an estimated residual value of $25,000 and an estimated operating hour of 40,000 hours is to be depreciated by the units-of-output method. What is the amount to be presented in the balance sheet at the end of the first full year, during which the machine was used for 15,000 hours?

Select one:

a.$75,000

b.$150,000

c.$5,000

d.$125,000