A Company Purchased a Weaving Machine for $190,000

question 102

Multiple Choice

A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a salvage 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:

Timely

Pertaining to the occurrence of actions or events at a suitable or opportune moment, ensuring relevance and effectiveness.

Informal Communication

The casual and unstructured manner of exchanging ideas and information typically outside formal communication channels.

Status Differential

The disparity in rank, power, or social standing between individuals or groups within a social hierarchy or organization.

Physical Relaxation

A state of being free from tension and anxiety in the body, often achieved through techniques like deep breathing, meditation, or yoga.