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Connect connect.hemi consumer id container Iti&context;,id-contextid&custom; action section C ested Sites Web Slice Callery r8 Quiz Help Save&Exit; Sub MC Qu. 172 Mohr Company purchases a machine at... Mohr Company purchases a machine at the beginning of the year at a cost of $44,000. 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 anicipates producing 82.000 units. The machine is estimated to have a $3,000 salvage value. The company produces 10,700 units in year 1 and 7,700 units in year 2. Depreciation expense in year 2 is: Multiple Choice $8,200 $3,000 K Prev 13 of 20 Next> 8

Explanation / Answer

calculate depreciation expense for year 2 :

Depreciation expense for year 2 = (44000-3000/82000)*7700 = 3850

so answer is depreciation expense for year 2 is $3850

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