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Question(s) / Instruction(s):

A machine with a cost of $80,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method.  What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

a)            $26,667                                 

b)            $5,000                                   

c)            $15,000                                 

d)            $25,000                

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