Equipment with a cost of $450,000 has an estimated salvage value of $30,000 and an estimated life of 4 years or 10,000 hours.It is to be depreciated by the units-of-activity method.What is the amount of depreciation for the first full year, during which the equipment was used for 2,700 hours?
A) $112,500.
B) $105,000.
C) $113,400.
D) $108,750.
Correct Answer:
Verified
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