Classic Irons Inc. purchased Manufacturing Equipmentwith an expected useful life of five years or 5000 hours of usage.The equipment was purchased on January 7 2008 for $460000. It isexpected to have a salvage value of $60000 at the end of fiveyears. During 2008 the equipment was used for 1200 hours. Assumethe usage for the next four years will be 1000 hours 900 hours1300 hours and 500 hours respectively.
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