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A factory machine was purchased for $383000 on January 1, 2021. It was estimated that it would have a $71000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 35000 hours in the 5 years. The company ran the machine for 3500 actual hours in 2021. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be :
a. $31200.
b. $38300.
c. $62400.
d. $71000.
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Answers: 3
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A factory machine was purchased for $383000 on January 1, 2021. It was estimated that it would have...
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