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Question - A factory machine was purchased for $20,000 on March 1, 2021. It was estimated that it would have a $4,000 residual value at the end of its 5-year useful life. It was also estimated that the machine would be run 25,000 hours in the 5 years. If the actual number of machine hours run in 2021 was 4,000 hours and the company uses the units-of-production method of depreciation, find the amount of depreciation expense for 2021?
a. $2,133.
b. $4,000.
c. $,560.
d. $3,200.
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