A Machine with a Cost of $240,000 Has an Estimated

question 275

Multiple Choice

A machine with a cost of $240,000 has an estimated residual value of $15,000 and an estimated useful life of 5 years or 15,000 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 5,000 hours?

• A) $75,000
• B) $45,000
• C) $65,000
• D) $80,000

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Definitions:

Myoblasts

Precursor cells that are responsible for muscle development through the process of differentiation and fusion to form muscle fibers.

Erythrocytes

Red blood cells, which carry oxygen from the lungs to the body's tissues and return carbon dioxide from the tissues back to the lungs.

Osteoblasts

Cells that are responsible for bone formation by synthesizing the bone matrix and mineralizing it.

Chondroblasts

Cells that secrete cartilage matrix, leading to the formation of cartilage tissue.