A Machine with a Cost of $480,000 Has an Estimated

question 24

Multiple Choice

A machine with a cost of $480,000 has an estimated salvage value of $30,000 and an estimated useful life of five 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)$150,000
• B)$90,000
• C)$130,000
• D)$160,000

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Definitions:

Capital Equipment Assets

Long-term physical assets purchased for manufacturing, production, or other business operations.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Office Equipment

The machinery, tools, and furniture used in an office environment to facilitate work, such as computers, printers, and desks.

Total Quality Management (TQM)

A management approach centered on continuous improvement, focusing on quality control across all areas of an organization.