Wickland Company Installs a Manufacturing Machine in Its Production Facility

question 160

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 units-of-production method.

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

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Definitions:

Daily Interest Rate

The interest rate applied to a loan or investment for a single day, often used for calculating interest over short periods.

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Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer.