Mohr Company purchases a machine at the beginning of the year at a cost of $24,000.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 40,000 units.The machine is estimated to have a $4,000 salvage value.The company produces 9,000 units in year 1 and 6,000 units in year 2.Depreciation expense in year 2 is:
A) $4,000.
B) $4,500.
C) $9,600.
D) $3,000.
E) $14,400.
Correct Answer:
Verified
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