Answer:
The answer is option (B), accumulated depreciation at end of the second year=36,000+45,600=$81,600
Explanation:
Determine the depreciable cost using the formula below;
depreciable cost=acquisition cost-residual value
where;
acquisition cost=$190,000
residual value=$10,000
replacing;
depreciable cost=190,000-10,000=$180,000
depreciable cost=$180,000
Determine the cost per unit as follows;
depreciable cost=cost per bolt×number of bolts produced
where;
depreciable cost=$180,000
cost per bolt=c
number of bolts produced=75,000 bolts
replacing;
180,000=c×75,000
75,000 c=180,000
c=180,000/75,000=2.4
The cost per bolt=$2.4
annual depreciation for the first year=(2.4×15,000)=$36,000
annual depreciation for the second year=(2.4×19,000)=$45,600
accumulated depreciation at end of the second year=36,000+45,600=$81,600
