Mohr Company Purchases a Machine at the Beginning of the Year

question 202

Multiple Choice

Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the units-of-production method. The company estimates it will use the machine for 5 years, during which time it anticipates producing 40,000 units. The machine is estimated to have a $4,000 salvage value.
-The company produces 9,000 units in year 1 and 6,000 units in year 2. Depreciation expense in year 2 is:

• A) $3,000.
• B) $4,000.
• C) $9,600.
• D) $4,500.
• E) $14,400.

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Definitions:

Positive Reinforcement

A process in behavioral psychology where the introduction of a positive stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Structuralists

Individuals associated with an approach in psychology that explores the elemental structure of the human mind, primarily through introspection.

Mental Processes

The internal, covert activities of our minds like thinking, feeling, and remembering.

Adapt

The process of changing or adjusting to fit new conditions or environments.