Multiple Choice Question 93

Equipment with a cost of $562600 has an estimated salvage value of $25000 and an estimated life of 4 years or 12800 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 3200 hours?

$140650.

$145650.

$134400.

$146900.