Equipment with a Cost of $450,000 Has an Estimated Salvage

Multiple Choice

Equipment with a cost of $450,000 has an estimated salvage value of $30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours?

A) $112,500.
B) $105,000.
C) $113,400.
D) $108,750.