A factory machine was purchased for $375000 on january 1, 2018. it was estimated that it would have a $75000 salvage value at th

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A factory machine was purchased for $375000 on january 1, 2018. it was estimated that it would have a $75000 salvage value at th

e end of its 5-year useful life. it was also estimated that the machine would be run 40000 hours in the 5 years. the company ran the machine for 4000 actual hours in 2018. if the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2018 would be

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natima [27] · Answer 1 · 2022-07-27T17:50:03+03:00

Given that a<span> factory machine was purchased for $375000 on january 1, 2018. it was estimated that it would have a $75000 salvage value at the end of its 5-year useful life. it was also estimated that the machine would be run 40000 hours in the 5 years. the company ran the machine for 4000 actual hours in 2018.

If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2018 would be

$\frac{375000-75000}{40000} \times4000= \frac{300000}{10} =\$30,000$ </span>