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On January 2, 2017, Zebra Ltd

Question 58

Multiple Choice

On January 2, 2017, Zebra Ltd.purchased equipment to be used in its manufacturing operations.The equipment has an estimated useful life of ten years, and an estimated residual value of $22,000.It was also estimated that the equipment would be used a total of 42,000 hours over its useful life.The depreciation expense for this equipment was $104,000 for calendar 2018, using the units of production method.The machine was used for 5,000 hours in 2018.The acquisition cost of the equipment was


A) $815,600.
B) $872,400.
C) $873,600.
D) $895,600.

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