Problem:
A machine with a cost of $ 65,000 has an estimated residual value of $ 5,000 and an estimated life of 5 years or 15,000 hours. If it is to be depreciated by the units-of-production method,
Required:
Question: What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?
A. $ 8,000
B. $ 20,000
C. $ 12,000
D. $ 21,667
Note: Please show the work not just the answer.