Wilson Company purchased equipment to be used in its factory. The equipment cost $32,000. Wilson estimates that the equipment will have a useful life of 8,000 hours after which it will have a $2,000 salvage value. During the first year, the machine was used for 2,500 hours. Using units of production depreciation, what is the depreciable basis (how much will be depreciated over the asset's life)?

$34,000

$29,500

$30,000

Wilson Company purchased equipment to be used in its factory. The equipment cost $32,000. It will be used for 5 years, after which its residual value will be about $2,000. What is the depreciation expense per year assuming the company uses straight-line depreciation?

$6,000

$6,400

$5,667

Which of the following is true regarding depreciation expense?

It is a regular operating expense on the balance sheet.

It is a contra asset on the balance sheet.

It is a regular operating expense on the income statement

Wilson Company purchased equipment to be used in its factory. The equipment cost $32,000. It will be used for 5 years, after which its residual value will be about $2,000. What is the book value of the asset after year 1 assuming that the company uses straight line depreciation?

$26,000

$24,000

$32,000

Wilson Company purchased equipment to be used in its factory. The equipment cost $32,000. Wilson estimates that the equipment will have a useful life of 8,000 hours after which it will have a $2,000 salvage value. During the first year, the machine was used for 2,500 hours. Using units of production depreciation, what is the depreciation expense for the first year?

		$9,375
		$10,000
		Some other number