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based on the following information regarding the purchase of equipment. Cost: $ 5 , 0 0 0 Salvage value: $ 1 , 0 0 0

based on the following information regarding the purchase of equipment.
Cost: $5,000
Salvage value: $1,000
Estimated useful life (in years): 4 years
Estimated useful life (in hours): 20,000 Under the double declining balance method, what is the depreciation expense in the first year?
a) $1,000 c) $2,000
b) $1,250 d) $2,500
6) Under the double declining balance method, what is the depreciation expense in the second year?
a) $1,000 c) $2,000
b) $1,250 d) $2,500
7) Under the units of activity method, what would be the depreciation expense if the machine was used in the first year for 6,000 hours?
a) $ 600 c) $1,500
b) $1,200 d) $4,000

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