Answer:
The amount of depreciation expense that should be recorded for the second year: $26,160
Step-by-step explanation:
The units-of-production depreciation method is calculated by using the following formula:
Depreciation Expense = [(Cost of asset − Residual Value)/Life in Number of Units] x Number of Units Produced = Depreciation Expense per unit x Number of Units Produced
In the company,
Depreciation Expense per bolt = ($190,000 - $10,000)/750,000 = $0.24
In the second year, 109,000 bolts were produced,
Depreciation expense for the second year = $0.24 x 109,000 = $26,160