Question:
Mohr Company purchases a machine at the beginning of the
Last updated: 3/10/2024
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Mohr Company purchases a machine at the beginning of the year at a cost of 36 000 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 80 000 units The machine is estimated to have a 4 000 salvage value The company produces 10 000 units in year 1 and 7 000 units in year 2 Depreciation expense in year 2 is Multiple Choice 4 000 6 400 14 400 2 800 21 600