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Compute depreciation for activity method

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Question - ABC company, in 2019, a new machine was acquired for $ 900,000. The machine has an estimated salvage value of $ 100,000 and an estimated useful life of 10 years. The machine is expected to produce a total of 500,000 units of product throughout its useful life. Compute depreciation for 2009 activity method if the output for the year is 60,000.

a. 96000

b. 56000

c. 108000

d. 48000

Reference no: EM132630425

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