Question: Pierce Candy Company uses the units-ofactivity method of depreciation and closes its books every December 31. On July 1, 2022, the company pays $60,000 cash

Pierce Candy Company uses the units-ofactivity method of depreciation and closes

Pierce Candy Company uses the units-ofactivity method of depreciation and closes its books every December 31. On July 1, 2022, the company pays $60,000 cash for equipment with an estimated salvage value of $10,000 and an estimated useful life of four years or 2,000 hours. What amount of depreciation expense should the company record in 2022 if the company uses the equipment for 100 hours in 2022? a. $12,500 b. $6,250 c. $1,250 d. $2,500

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