Equipment with a Cost of $400000 Has an Estimated Salvage

Multiple Choice

Equipment with a cost of $400000 has an estimated salvage value of $25000 and an estimated life of 4 years or 15000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year during which the equipment was used 3300 hours?

A) $100000
B) $113800
C) $82500
D) $93750