Mohr Company Purchases a Machine at the Beginning of the Year

question 23

Multiple Choice

Mohr Company purchases a machine at the beginning of the year at a cost of $24,000.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 40,000 units.The machine is estimated to have a $4,000 salvage value.The company produces 9,000 units in year 1 and 6,000 units in year 2.Depreciation expense in year 2 is:

• A)$4,000.
• B)$4,500.
• C)$9,600.
• D)$3,000.
• E)$14,400.

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Definitions:

Organizational Effectiveness

The degree to which an organization is successful in achieving its goals and objectives through efficient use of resources, adaptability, and fulfilling stakeholder needs.

Effective

Having the desired result or outcome; achieving the intended goal efficiently and successfully.

Surviving

The act of continuing to live or exist, especially in spite of challenging conditions or circumstances.

Tom Burns

A sociologist known for his work in organizational theory, particularly regarding the dynamics of industrial society.