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bapps/assessment/take/launch,jsp?cour nt_id-310201-1& QUESTION 6 Question is wor

ID: 2543197 • Letter: B

Question

bapps/assessment/take/launch,jsp?cour nt_id-310201-1& QUESTION 6 Question is worth 8 total points. Attach work to question #12 Your company purchased a piece of equipment for $330,000 You determine it has a salvage value of $5,000 You determine the machine has a useful life of 12,500 hours The usage is as follows Year 1 -3,725 hours Year 2 4,125 hours Year 3 1,050 hours Year 4-3,150 hours Year 5- 450 hours How much depreciation has accumulated after year 27 $107.250 O$108,900 O $204,100 O $207 240

Explanation / Answer

Depreciaiton/unit=(Cost-Salvage value)/Useful life

=(330,000-5000)/12500=$26/hour

Hence accumulated depreciatiin after year 2=$26(3725+4125)

which is equal to

=$204100.