In Year 1 Utica Machinery Company uses the asset from
In Year 1, Utica Machinery Company uses the asset from RE11-4 for 7,500 hours. All of these hours are capitalized to an inventory account. Prepare the journal entry to record the depreciation.
In RE11-4, Utica Machinery Company purchases an asset for $1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for $150,000. What is the depreciation rate per hour based on activity?

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