Alocal diner purchased a stove at a cost of $6,000. the expected life is 7,000 hours of production, at which time it will have no salvage value. using the units-of-production method, find the depreciation for a year in which the stove is used for 900 hours.
0.67
$1,050
$4,666.67
$774

The following is the formula to calculate depreciation under units of production method:

depreciation =  multiplied by the (cost - salvage value)

So in our given:

$6000 is the cost
0 for salvage value
900 hours in the units used
7000 hours is the life of the asset

Plug this in the formula:

multiplied by 6000
= .129 * 6000
= $774

The answer is $774

Step-by-step explanation: