Mohr Company purchases a machine at the beginning of the

Last updated: 3/18/2024

Mohr Company purchases a machine at the beginning of the year at a cost of 47 000 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 50 000 units The machine is estimated to have a 7 000 salvage value The company produces 10 900 units in year 1 and 7 900 units in year 2 Depreciation expense in year 2 is Multiple Choice 7 000 8 000 18 800 6 320