On January 1,2017,Zade Manufacturing Corporation Purchased a Machine for $40,900,000

question 177

Multiple Choice

On January 1,2017,Zade Manufacturing Corporation purchased a machine for $40,900,000.Zade's management expects to use the machine for 27,000 hours over the next six years.The estimated residual value of the machine at the end of the sixth year is $47,000.The machine was used for 3,900 hours in 2017 and 5,400 hours in 2018.What is the depreciation expense for 2017 if the corporation uses the units-of-production method of depreciation? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

• A)$5,900,973
• B)$13,633,333
• C)$8,170,578
• D)$5,907,759

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