A Factory Has a Machine Costing $76,000

question 9

Multiple Choice

A factory has a machine costing $76,000.It has a 5-year life and an estimated capacity of 160,000 parts.The salvage value of the machine is zero.Assume 35,000 parts are machined in the first year of operation.Using the units-of-production method,what is the depreciation expense in Year 1?

• A) $16,625
• B) $14,187
• C) $15,200
• D) $12,160

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