The Widget Tool and Die Company Buys a $400,000 Stamping

question 107

Multiple Choice

The Widget Tool and Die Company buys a $400,000 stamping machine that has an estimated residual value of $20,000.The company expects the machine to produce two million units.It makes 400,000 units during the current period.If the units-of-production method is used,the depreciation expense for this period is:

• A)$80,000.
• B)$400,000.
• C)$76,000.
• D)$380,000.

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