A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of five years or 15,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours? a. $5,000 b. $35,000 c. $21,000 d. $45,000

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Chapter18: Accounting For Long-term Assets
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A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of five years or

15,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second

full year, during which the machine was used 5,000 hours?

a. $5,000

b. $35,000

c. $21,000

d. $45,000

2. Equipment with a cost of $220,000 has an estimated residual value of $30,000 and an estimated life of 10 years or

19,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year,

during which the equipment was used 2,100 hours?

a. $19,000

b. $21,000

c. $22,000

d. $30,000

3. A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of four years or

18,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?

a. $17,500

b. $37,500

c. $18,750

d. $16,667

 

 

 

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