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1. A machine costs $40000 has a salvage value of $8000 and is expected to have a useful life of 100000 hours. If it is utilized for a total of 8000 hours in year one what is the depreciation expense based on the unit-of-production-method at the end of the year?A. $2560B. $3200C. $4000D. $250002. Baker Company purchases a new delivery truck for $20000. The truck is expected to have a useful life of 90000 miles before replacement and a salvage value of $2000. In its first year the truck was driven 22000 miles and a further 19000 miles in year two. What is the depreciation expense and book value at the end of year two?A. $3800; $11800B. $4400; $11200C. $4222.22; $10888.88D. $8200; $98003. A delivery truck is purchased for $38000 has a salvage value of $6000 and is depreciated using MACRS. What is the first-year depreciation expense?A. $4578.80B. $5430.20C. $7600.00D. $15200.004. Dennison Property Company purchases a new office space for lease to small businesses for $2400000 including a land value of $400000. The property is placed in service on March 15 1999. Using MACRS what is the depreciation on this property at the end of its first year?A. $40660B. $43656C. $50260D. $57850

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