On April 1, 2018, a machine was purchased for $33,600. It was estimated that it would have a $3,200 residual value at the end of its 5-year useful life. It was also estimated that the machine would be used for a total of 80,000 hours over the 5 years. If the actual number of machine hours used in 2018 was 12,000 hours and the company uses the units-of-production method of depreciation, the depreciation expense for 2018 would be
A) $5,040.
B) $4,560.
C) $3,780.
D) $3,420.

Question

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The Answer of On April 1, 2018, a machine was purchased for $33,600. It was estimated that it would have a $3,200 residual value at the end of its 5-year useful life. It was also estimated that the machine would be used for a total of 80,000 hours over the 5 years. If the actual number of machine hours used in 2018 was 12,000 hours and the company uses the units-of-production method of depreciation, the depreciation expense for 2018 would be
A) $5,040.
B) $4,560.
C) $3,780.
D) $3,420.

On April 1, 2018, a Machine Was Purchased for $33,600