- A factory machine was purchased for $300,000 on January 1, 2020. It was estimated that it would have a $60,000 residual value at the end of its 5- year useful life. It was also estimated that the machine would be run 80,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2020. If the company uses the units-of- activity method of depreciation, the amount of depreciation expense for 2020 would be: O a. $30,000. O b. $15,000 O c. $12,000. O d. $24,000.

- A factory machine was purchased for $300,000 on January 1, 2020. It was estimated that it would have a $60,000 residual value at the end of its 5- year useful life. It was also estimated that the machine would be run 80,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2020. If the company uses the units-of- activity method of depreciation, the amount of depreciation expense for 2020 would be: O a. $30,000. O b. $15,000 O c. $12,000. O d. $24,000.

Name: - A factory machine was purchased for $300,000on January 1, 2020. It
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Description: - A factory machine was purchased for $300,000on January 1, 2020. It was estimated that it wouldhave a $60,000 residual value at the end of its 5-year useful life. It was also estimated that themachine would be run 80,000 hours in the 5 years.The co

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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