A Factory Machine Was Purchased for $375,000 on January 1

question 112

Multiple Choice

A factory machine was purchased for $375,000 on January 1, 2015. It was estimated that it would have a $75,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2015. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2015 would be

• A)$37,500.
• B)$60,000.
• C)$75,000.
• D)$30,000.

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Definitions:

Positive Influence

The ability to affect others in a beneficial way, encouraging improvement or positive change in behavior and attitudes.

Mangers

Managers are individuals responsible for planning, directing, and overseeing operations and employees within organizations, making strategic decisions to achieve goals.

Repertoire

A collection or range of skills, abilities, or items available to someone or something.

Affiliative

Pertaining to the creation of social connections and fostering harmony within a group, emphasizing relationships over tasks.