Compatibility Services Acquired an $80,000 Machine on January 1,20X3

question 50

Multiple Choice

Compatibility Services acquired an $80,000 machine on January 1,20X3.The machine is estimated to have a useful life of 8 years,and a residual value of $4,000.For units-of-production depreciation purposes,the machine is expected to produce 400,000 units.If Compatibility Services uses double-declining-balance depreciation,what is the depreciation expense in 20X4?

• A)$ 19,000
• B)$ 10,000
• C)$15,000
• D)$9,500
• E)$16,000

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