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Mohr Company purchases a machine at the beginning of the year at a cost of $42,000. 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 55,000 units. The machine is estimated to have a $9000 salvage value. The company produces 10,600 units in year 1 and 7600 units in year 2. Depreciation expense in year 2 is:
A) $6600. B) $16,800. C) $25,200. D) $9000. E) $4560.
Sagot :
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