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TEA [102]
3 years ago
15

Carson Company purchased a depreciable asset for $560,000. The estimated salvage value is $28,000, and the estimated useful life

is 10,000 hours. Carson used the asset for 1,500 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset in the current year?
Business
1 answer:
LenaWriter [7]3 years ago
5 0

Answer:

$79,800

Explanation:

Depreciation expense using the activity method = (actual hours of use in a given period / total estimated hours of use ) × ( Cost of asset - Salvage value)

(1500/10,000) × ($560,000 - $28,000) = $79,800

I hope my answer helps you.

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#SPJ4

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