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A Machine with a Cost of $640,000 Has an Estimated

Question 87

Multiple Choice

A machine with a cost of $640,000 has an estimated salvage value of $40,000 and an estimated useful life of 5 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 for 5,000 hours?


A) $200,000.
B) $120,000.
C) $173,333.
D) -$173,333.

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