View History Bookmarks Window Help canvas.highline.edu 4 pts D Question 12 we Qu

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View History Bookmarks Window Help canvas.highline.edu 4 pts D Question 12 we Quick purchased a piece of machinery for 150,000 on September 30 2012. Quick's year end is December. The residual value was 25,000 and had a 10-year life or 50000 hours. Quick used the machine for Year 1 12000 hours Year 2 15000 hours What is depreciation expense in year 2 using the activity based method et ash d 1 he ac 30000 37500 24000 stan a re ersCP MBA, C D Question 13 00 that h 4 pts Joe purchased a piece of machinery for 150,000 on 1/1/2013. Joe's year end is December. The residual value was 25,000 and had I Unit 1-exterr al accou a 10-year life or 40000 hours. Joe used the machine for to mana timates 12 ?o

Explanation / Answer

Depreciation for year 2:

= (Year 2 usage/Total life usage)×Depreciable base

= (15,000/50,000)×($150,000-$25,000)

= 0.30×$125,000

= $37,500

Hence, correct option is 37500.

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