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il63 [147K]
3 years ago
7

Use units-of-activity depreciation to calculate the annual depreciation for equipment that cost 20,000 with a residual value 5,0

00 and is expected to run for 15,000 hours. The machine ran 6,000 hours this year:____________
Business
1 answer:
dsp733 years ago
8 0

Answer: $6,000

Explanation:

Depreciation rate = (Cost - Residual value) / Expected useful life run

= (20,000 - 5,000) / 15,000

= $1 per hour

Machine ran for 6,000 hours so depreciation is;

= 6,000 * 1

= $6,000

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