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Sagot :
The depreciation expense to the machine that Mohr Company purchased, in year 2, based on the cost of the machine and the units of production method is $4, 000
How to find the depreciation expense?
When using the units-of-production method to find depreciation, the focus would be on the amount of products that a machine or equipment was able to produce in a year, and then comparing this to the total amount of units the machine was to produce over its lifetime.
Firstly, there is a need to find the useful value of the machine by the formula:
= Cost of machine- Salvage value
= 48, 000 - 5, 000
= $43, 000
The depreciation expense in year 2 would then be:
= Number of units produced in year 2 / Total number of units expected over lifetime x Useful value of machine
= 8, 000 / 86, 000 x 43, 000
= $4, 000
Find out more on the units-of-production method at https://brainly.com/question/15731283
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