Wickland Company Installs a Manufacturing Machine in Its Production Facility

question 97

Multiple Choice

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.The machine's useful life is estimated to be 5 years,or 400,000 units of product,with a $7,000 salvage value.During its second year,the machine produces 84,500 units of product.Determine the machines' second year depreciation under the double-declining-balance method.

• A)$16,900.
• B)$16,000.
• C)$17,400.
• D)$18,379.
• E)$20,880.

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Definitions:

Profit And Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, reflecting the company's profit or loss.

Break-Even Point

The point at which total costs equal total revenues, indicating that a business is neither making a profit nor incurring a loss.

Sales Mix

The combination of different products or services that a company sells, impacting its overall profitability and performance.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.