Equipment with a cost of $154,078 has an estimated residual value of $7,175 and an estimated life of 6 years or 14,469 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used for 3,867 hours?

a.$24,483.83

b.$39,261.45

c.$25,679.67

d.$39,299.44

On June 1, Michael Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years or 30,000 hours.

Using straight-line depreciation, compute depreciation expense for the second year.

a.$17,500

b.$40,000

c.$12,500

d.$30,000