A Company Purchased a Weaving Machine for $190,000

question 82

Multiple Choice

A company purchased a weaving machine for $190,000.The machine has a useful life of 8 years and a residual value of $10,000.It is estimated that the machine could produce 75,000 bolts of woven fabric over its useful life.In the first year,15,000 bolts were produced.In the second year,production increased to 19,000 units.Using the units-of-production method,what is the amount of depreciation expense that should be recorded for the second year?

• A)$48,133.
• B)$45,600.
• C)$22,500.
• D)$23,750.
• E)$81,600.

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Definitions:

Workers' Compensation Insurance

Insurance that provides medical benefits and wage replacement to employees injured on the job.

FUTA

This Act enforces a payroll tax on enterprises to finance state labor agencies, known as the Federal Unemployment Tax Act.

SUTA

State Unemployment Tax Act, which mandates unemployment insurance taxes that employers must pay.

Workers' Compensation

A type of insurance that offers medical benefits and replaces wages for workers hurt while performing their job duties.