Answer:
4,500
Explanation:
Depreciation is the systematic allocation of the cost of an asset over its useful life period. The various method of depreciation are straight line , reducing balance , units of production etc.
Using the units of production to calculate the depreciation for year 2, we have
Cost of equipment = 160,000
Residual value = 10,000
Depreciable amount = 160,000-10,000 =150,000
Total production hours = 100,000
Production hours used in year 2 =3,000
Depreciation for year 2 = 3,000/100,000*150,000 = 4,500
