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Extra Financial Services uses the units of activity method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred
Extra Financial Services uses the units of activity method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years: 2019 March 31 Purchased a bus for the employees for $4,500 cash plus value-added tax of $250. Nov.1 incurred ordinary repairs on the bus of $600. Dec. 31 Recorded 2019 depreciation on the basis that the bus has a four-year life in which it can drive for 100,000 kilometers, and estimated salvage value of $750. The actual kilometers in 2019 were 10,000 kilometers only. Based on the given information above, the depreciation expense for the bus in 2019 would be: Select one: O a. 750 O b. 675 c. 400 Od. 650
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