Equipment with a Cost of $450,000 Has an Estimated Salvage

question 154

Multiple Choice

Equipment with a cost of $450,000 has an estimated salvage value of $30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours?

• A)$112,500.
• B)$105,000.
• C)$113,400.
• D)$108,750.

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Definitions:

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A country located in the southern portion of North America, known for its rich culture, history, and diverse landscapes.