Question
Question Content Area A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of 5 years or
Question Content Area
A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
a. $5,000
b. $45,000
c. $21,000
d. $35,000
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Accounting An Introduction
Authors: Atrill Peter, Eddie McLaney
6th Edition
0273771833, 978-0273771838
