Equipment with a Cost of $640,000 Has an Estimated Salvage

question 12

Multiple Choice

Equipment with a cost of $640,000 has an estimated salvage value of $40,000 and an estimated life of 4 years or 15,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?

• A)$160,000.
• B)$180,800.
• C)$132,000.
• D)$150,000.