A company purchased a rope braiding machine for $184,000. The machine has a usef

Question

A company purchased a rope braiding machine for $184,000. The machine has a useful life of 9 years and a residual value of $11,000. It is estimated that the machine could produce 730,000 units of climbing rope over its useful life. In the first year, 102,000 units were produced. In the second year, production increased to 110,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year? Do not round the depreciation per unit. Round your final answer to a whole dollar amount.

$26,068

$27,247

$24,173

$27,726

$29,384

Explanation / Answer

$26,068

amount of depreciation that should be recorded for the second year=$184,000-$11,000/ 730,000 units*110,000 units=$26,068

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