Castle Corporation purchased a forklift for $65,000 on July 1. The forklift has an estimated useful life of 20,000 usage hours with a residual value of $5,000. Castle uses the units-of-production method for depreciation. If Castle uses the forklift for 5,500 hours during the first year, the depreciation expense on the forklift would be :

A. $65,000.
B. $16,500.
C. $5,000.
D. $17,875

Answer rating: 100% (QA)

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