A Company Purchased a Rope-Braiding Machine for $190,000

question 23

Multiple Choice

A company purchased a rope-braiding machine for $190,000.The machine has a useful life of eight years and a residual value of $10,000.It is estimated that the machine could produce 750,000 units of climbing rope over its useful life.In the first year,105,000 units were produced.In the second year,production increased to 109,000 units.Using the units-of-production method,what is the amount of depreciation that should be recorded for the second year?

• A)$25,200
• B)$26,160
• C)$26,660
• D)$27,613
• E)$53,160

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Definitions:

Trans Fats

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A type of fried dough confectionery or dessert food, typically circular with a hole in the center.

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