A Machine That Cost $72,000 Has an Estimated Residual Value

question 137

Multiple Choice

A machine that cost $72,000 has an estimated residual value of $6,000 and an estimated useful life of 5 years or 30,000 hours.Using the units-of-production method, the depreciation expense for the second year, during which the machine was used 5,000 hours, would be

• A)$14,400.
• B)$13,200.
• C)$12,000.
• D)$11,000.

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