A machine with a cost of $180,000 has an estimated residual value of $20,000 and an estimated life of 4 years or 20,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours? $5,000 Ob $50,000 O $20,000 d. $40,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A machine with a cost of $180,000 has an estimated residual value of $20,000 and an estimated life of 4 years or 20,000 hours. It
is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the
machine was used 5,000 hours?
$5,000
b. $50,000
$20,000
Od $40,000
Transcribed Image Text:A machine with a cost of $180,000 has an estimated residual value of $20,000 and an estimated life of 4 years or 20,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours? $5,000 b. $50,000 $20,000 Od $40,000
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