A Machine with a Cost of $480000 Has an Estimated

question 290

Multiple Choice

A machine with a cost of $480000 has an estimated salvage value of $30000 and an estimated useful life of 5 years or 15000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year during which the machine was used 5000 hours?

• A) $150000
• B) $90000
• C) $130000
• D) $160000

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