Wickland Company Installs a manufacturing machine in its pro

Wickland Company Installs a manufacturing machine in its production facility at the beginning of the year at a cost of $108,000. The machine\'s useful Iife is estimated to be 4 years, or 140,000 units of product, with a $2,000 salvage value. During its second year the machine produces 28,000 unilts of product. Determine the machines\' second year depreclation under the straight-line Mutiple Choice $27,000 $21600 Prey lot 25 ?ll Next > command option

Solution

1.

Answer is B. $26,500

Please note that, Only one question can be answered at a time

Cost of machine	$ 108,000
Less: Salvage value	$    (2,000)
Depreciable value	$ 106,000
Life of the machine	4 years
Depreciation per year ($106,000/4)	$    26,500