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Question - On January 4, 2019, Margaret's Cafe acquired equipment for $147,500. The estimated life of the equipment is 4 years or 42,500 hours. The estimated residual value is $20,000. What is the depreciation for 2019, if Margaret's Cafe uses the asset 14,500 hours and uses the units-of-production method of depreciation?
A. $31,875
B. $20,000
C. $43,500
D. $ 36,875
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