What Would Be the Depreciation Expense in Year 1,using Units-Of-Production,for

question 56

Multiple Choice

What would be the depreciation expense in year 1,using units-of-production,for a molding machine that cost $22,000,had a useful life of 7 years,and an estimated total machine hours of 40,000? The salvage value is $2,000 and production in year 1 was 8,000 hours.

• A)$5,000
• B)$4,400
• C)$6,000
• D)$4,000

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Definitions:

Invoice

A document sent by a provider of a product or service to the purchaser that specifies the amount due for the product delivered or service provided.

Advertising Brochure

A promotional document designed to introduce, explain, and market a company's products or services to potential buyers.

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a designated person.

Recording Process

The recording process in accounting involves chronologically documenting the financial transactions of a business to ensure accurate financial reporting.