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Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $156,000. The machine's useful life is estimated to be 20 years, or 110,000 units of product, with a $1,000 salvage value. During its second year, the machine produces 4,400 units of product. Determine the machines' second-year depreciation under the straight-line method.

Multiple Choice

$7,800.


$6,240.


$6,200.


$7,850.


$7,750.

User Jayesh Mardiya
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1 Answer

14 votes
14 votes

Answer:

Step-by-step explanation:

Annual depreciation=(cost-salvage value)/useful life

Annual depreciation =(156,000-1000)/20

Annual depreciation =$7750/year

Hence Depreciation for second year=$7750.

User ShueiYang
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