Southern Airlines
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Free InquirySouthern Airlines purchased a new jet engine for $3,500,000. The engine has a 50,000 hour life and no salvage value. The accounting department at Southern Airlines determines asset depreciation using the units-of-activity method. The engine was flown 250 hours in February. What is the depreciation expense for the engine in February?
$12,500
$17,500
$8,750
$31,250
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