On January 1, 2016, Digger Purchased Some Equipment for $29,600

question 119

Multiple Choice

On January 1, 2016, Digger purchased some equipment for $29,600. The anticipated life of the equipment was five years and residual value was estimated to be $4,100. The machine was expected to produce 600,000 units. In January of 2016, 35,000 units were produced and production was doubled in February. The company uses the activity depreciation method. What is the amount of depreciation expense for the month of February?

• A) $ 637.50
• B) $1,487.50
• C) $3,453.33
• D) $2,975.00

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