A Machine That Cost $72,000 Has an Estimated Residual Value

question 132

Multiple Choice

A machine that cost $72,000 has an estimated residual value of $6,000 and an estimated useful life of 5 years or 30,000 hours. Using the units-of-production method, the depreciation expense for the second year, during which the machine was used 5,000 hours, would be

• A) $14,400
• B) $11,000
• C) $13,200
• D) $12,000

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Encompassing or including all or nearly all elements or aspects of something, often indicating a thorough or complete approach.

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