What is the depreciation expense for year ending

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Question - BC Manufacturing purchased a machine on 1 July, 2017. The following financial information has been collected to calculate the depreciation at 30 June 2019:

Cost $35,000

Expected salvage value $1,000

Estimated useful life in years 8

Estimated useful life in hours 100,000

Hours used in 2019 is: 25,000

Required - What is the depreciation expense for year ending 30 June 2019 if it adopts units of activity method?

a. 8,500

b. 8,000

c. 8,375

d. 8,150

Reference no: EM132569113

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