On May 1, Oriole Company purchased factory equipment for $748700. The asset's useful life in hours is estimated to be 198000. The estimated salvage value is $35000 and the estimated useful life in years is 9. The machine was used for 23000 hours in the first year. If the straight-line method will be used, what is depreciation expense for the first year of the asset's life? O $52867 O $79300 O $55459 O $82800

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On May 1, Oriole Company purchased factory equipment for $748700. The asset's useful life in hours
is estimated to be 198000. The estimated salvage value is $35000 and the estimated useful life in
years is 9. The machine was used for 23000 hours in the first year. If the straight-line method will be
used, what is depreciation expense for the first year of the asset's life?
O $52867
O $79300
O $55459
O $82800
Transcribed Image Text:On May 1, Oriole Company purchased factory equipment for $748700. The asset's useful life in hours is estimated to be 198000. The estimated salvage value is $35000 and the estimated useful life in years is 9. The machine was used for 23000 hours in the first year. If the straight-line method will be used, what is depreciation expense for the first year of the asset's life? O $52867 O $79300 O $55459 O $82800
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