Kleinschmidt Company Purchased a Depreciable Asset for €2,000,000

question 61

Multiple Choice

Kleinschmidt Company purchased a depreciable asset for €2,000,000.The estimated salvage value is €150,000, and the estimated useful life is 400,000 hours.Kleinschmidt used the asset for 35,000 hours in the current year.The activity method will be used for depreciation.What is the depreciation expense on this asset?

• A)€160,870
• B)€161,875
• C)€175,000
• D)€350,000

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