A Machine with a Cost of $640,000 Has an Estimated

question 87

Multiple Choice

A machine with a cost of $640,000 has an estimated salvage value of $40,000 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 for 5,000 hours?

• A)$200,000.
• B)$120,000.
• C)$173,333.
• D)-$173,333.

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Definitions:

Jobless Claims

The number of unemployed individuals who are actively seeking employment and have filed for unemployment benefits.

Strike Price

The predetermined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Warrants

Financial instruments that give the holder the right to buy a company's stock at a specified price until the expiration date.

Earnings Per Share

A financial measurement representing the portion of a company's profit allocated to each outstanding share of common stock, indicating company profitability.