A factory machine was purchased for $393000 on January 1, 2018. It was estimated that it would have a $74000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 30000 hours in the 5 years. The company ran the machine for 3900 actual hours in 2018.
Required:
1. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2018 would be .
A) $51090.
B) $41470.
C) $82940.
D) $74000.

Annual depreciation= $41,470

Explanation:

Giving the following information:

Purchasing price= $393,000

Salvage value= $74,000

The machine would be run 30000 hours in the 5 years. The company ran the machine for 3900 actual hours in 2018.

To calculate the depreciation expense using the units of activity method, we need to use the following formula on each year:

Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated

Annual depreciation= [(393,000 - 74,000)/30,000]*3,900

Annual depreciation= $41,470

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.