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On January 2, 2016 McNally's Extra Corporation acquired equipment for $120,000. The estimated life of the equipment is 5 years or 20,000 hours. The estimated
On January 2, 2016 McNally's Extra Corporation acquired equipment for $120,000. The estimated life of the equipment is 5 years or 20,000 hours. The estimated residual value is $20,000. What is the amount of depreciation expense for 2017, if McNally's Extra Corporation uses the asset 4,000 hours and uses the units minus of minus production method of depreciation?
A. $25,000 B. $30,000 C. $24,000 D. $20,000
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