Mohr Company purchases a machine at the beginning of the year at a cost of $42,000. The machine is depreciated using the units-of-production method. The company estimates it will use the machine for 5 years, during which time it anticipates producing 55,000 units. The machine is estimated to have a $9000 salvage value. The company produces 10,600 units in year 1 and 7600 units in year 2. Depreciation expense in year 2 is:

A) $6600.
B) $16,800.
C) $25,200.
D) $9000.
E) $4560.

Question

08-07-2024
Mathematics

Answered

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Mohr Company purchases a machine at the beginning of the year at a cost of $42,000. The machine is depreciated using the units-of-production method. The company estimates it will use the machine for 5 years, during which time it anticipates producing 55,000 units. The machine is estimated to have a $9000 salvage value. The company produces 10,600 units in year 1 and 7600 units in year 2. Depreciation expense in year 2 is:

A) $6600.
B) $16,800.
C) $25,200.
D) $9000.
E) $4560.

Sagot :

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