Answer:
The correct answer is C.
Explanation:
Giving the following information:
A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours.
To calculate the depreciation expense for each year, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year1= [(65,000 - 5,000)/4]*2= $30,000
Year2= [(60,000 - 30,000)/4]*2= $15,000
