A Machine with a Cost of $160,000 Has an Estimated

question 49

Multiple Choice

A machine with a cost of $160,000 has an estimated salvage value of $10,000 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) $50,000
• B) $30,000
• C) $43,333
• D) $53,333