A Company Purchased a Weaving Machine for $190,000

question 175

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 accumulated depreciation at the end of the second year?

• A)$48,133.
• B)$45,600.
• C)$86,133.
• D)$23,750.
• E)$81,600.

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Definitions:

Metabolism

The complex set of life-sustaining chemical reactions in organisms that enable the conversion of food to energy, elimination of nitrogenous wastes, and synthesis of necessary compounds.

Waste Products

Substances produced through metabolic and other processes in organisms that are no longer needed and are excreted or removed.

Musculomembranous Tube

A type of biological tube consisting of muscle and membrane layers, such as the gastrointestinal tract.

Bladder

A hollow organ in the lower abdomen that stores urine from the kidneys before it is excreted from the body.