Chapter 13, Problem 13.13E

Please explain the solution to this financial accounting problem with accurate explanations.

Can you help me solve this financial accounting question using valid financial accounting techniques?

An item of equipment owned by Thurman Manufacturing cost $180,000 and had an estimated use of 75,000 hours. During the first 3 years, the equipment was used for 15,000, 13,500, and 12,000 hours. The equipment has an estimated life of 7 years and an estimated salvage value of $22,500.