A Factory Machine Was Purchased for $375,000 on January 1

Multiple Choice

A factory machine was purchased for $375,000 on January 1, 2015. It was estimated that it would have a $75,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2015. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2015 would be

A) $37,500.
B) $60,000.
C) $75,000.
D) $30,000.