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

question 111

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 straight-line depreciation,what is the balance in the accumulated depreciation account on January 1,20X5?

• A)$19,000
• B)$20,000
• C)$28,500
• D)$21,600
• E)$30,000

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