Fields Company Purchased Equipment on January 1 for $180,000

question 167

Multiple Choice

Fields Company purchased equipment on January 1 for $180,000.This system has a useful life of 8 years and a salvage value of $20,000.The company estimates that the equipment will produce 40,000 units over its 8-year useful life.Actual units produced are: Year 1 - 4,000 units; Year 2 - 6,000 units; Year 3 - 8,000 units; Year 4 - 5,000 units; Year 5 - 4,000 units; Year 6 - 5,000 units; Year 7 - 7,000 units; Year 8 - 3,000 units.What would be the depreciation expense for the second year of its useful life using the units-of-production method?

• A)$20,000.
• B)$45,000.
• C)$33,750.
• D)$16,000.
• E)$24,000.

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Definitions:

Projection

A defense mechanism where individuals attribute their own unwanted feelings, motives, or thoughts to another person.

Threatening Impulses

Internal desires or drives that are perceived as dangerous or unacceptable, leading to anxiety or psychological discomfort.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and cope with reality or maintain self-image.

Fixation

An obsessive interest or feeling towards a particular object or idea that can result from unresolved conflicts, particularly those stemming from early childhood.