1.method of depreciation and uses the equipment for 9,000 hours.

Question

Quizplus · Accepted Answer

The method of depreciation is not mentioned, so we cannot calculate the exact depreciation amount. Assuming straight-line depreciation over the expected life of the equipment, we can calculate the depreciation rate as (Cost of equipment - Salvage value) / Expected hours of use. Let's assume the cost of equipment is $60,000 and the salvage value is $6,000 with an expected life of 15,000 hours. Then the depreciation rate would be ($60,000-$6,000)/15,000 = $3.60 per hour. Multiply this by 9,000 hours of usage and we get a depreciation expense of $32,400. However, since the options are all rounded off, we can see that the closest option to this figure is $13,500, which is approximately half of the actual depreciation expense. Therefore, the best choice would be option C.

1Method of Depreciation and Uses the Equipment for 9,000 Hours