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melamori03 [73]
3 years ago
10

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $127,000.

The machine's useful life is estimated to be 4 years, or 380.000 units of product, with a $3,000 salvage value During its second year, the machine produces 76,000 units of product. Determine the machines' second year depreciation under the straight-line method. a. $24, 800. b. $31,000.c. $31, 750.d. $25, 400. e. $32, 500.
Business
1 answer:
Brut [27]3 years ago
6 0

Answer:

b. $31,000

Explanation:

The computation of the depreciation expense using the straight-line method for the second year is shown below:

= (Original cost - residual value) ÷ (useful life)  

= ($127,000- $3,000) ÷ (4 years)  

= ($124,000) ÷ (4 years)  

= $31,000

Hence, the correct option is b. $31,000

The units are to be ignored as the method i.e used is straight line so the same is to be considered

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