Equipment with a cost of $1,712,000 has an estimated salvage value of $32,000 and estimated life of 4 years or 42,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used for 8,700 hours? a. $348,000. b. $420,000. c. $428,000. d. $386,629

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
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Equipment with a cost of $1,712,000 has an
estimated salvage value of $32,000 and
estimated life of 4 years or 42,000 hours. It is to be
depreciated using the units-of-activity method.
What is the amount of depreciation for the first full
year, during which the equipment was used for
8,700 hours?
a. $348,000.
b. $420,000.
c. $428,000.
d. $386,629
Transcribed Image Text:Equipment with a cost of $1,712,000 has an estimated salvage value of $32,000 and estimated life of 4 years or 42,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used for 8,700 hours? a. $348,000. b. $420,000. c. $428,000. d. $386,629
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