Equipment with a cost of $270,000 has an estimated salvage value of $50,000 and an estimated...

Transcribed Image Text:

Equipment with a cost of $270,000 has an estimated salvage value of $50,000 and an estimated life of 5 years or 12,500 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours? O a. $113,400 O b. $58,320 O c. $162,000 O d. $47,520 Equipment with a cost of $270,000 has an estimated salvage value of $50,000 and an estimated life of 5 years or 12,500 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours? O a. $113,400 O b. $58,320 O c. $162,000 O d. $47,520