Wickland Company Installs a Manufacturing Machine in Its Production Facility

question 56

Multiple Choice

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.The machine's useful life is estimated to be 5 years,or 400,000 units of product,with a $7,000 salvage value.During its second year,the machine produces 84,500 units of product.Determine the machines' second year depreciation under the straight-line method.

• A)$16,900.
• B)$16,000.
• C)$17,400.
• D)$18,379.
• E)$20,880.

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Definitions:

Past Data

Refers to previously collected or observed data used for analysis, comparison, or prediction.

Subjective Approach

A method based on personal opinions, interpretations, points of view, emotions and judgment.

Financial Accounting

The field of accounting that focuses on reporting a company's financial information to external users, such as investors and creditors.

Probability

The measure of the likelihood that a specific event will occur.