Wickland Company Installs a Manufacturing Machine in Its Production Facility

question 209

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.
-What journal entry would be needed to record the machines' second year depreciation under the units-of-production method?

• A) Debit Depletion Expense $16,900; credit Accumulated Depletion $16,900.
• B) Debit Depreciation Expense $16,900; credit Accumulated Depreciation $16,900.
• C) Debit Depletion Expense $16,000; credit Accumulated Depletion $16,000.
• D) Debit Amortization Expense $16,900; credit Accumulated Amortization $16,900.
• E) Debit Depreciation Expense $16,000; credit Accumulated Depreciation $16,000.

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Definitions:

Blame

The act of holding someone responsible for a fault or wrong.

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The extent to which individuals perceive they have power or influence over the events and circumstances in their life.

Self-Deception Strategy

A psychological mechanism wherein an individual convinces themselves of a truth or reality that may not be accurate, often to protect their ego.