Wings Manufacturing Company purchased a new machine on July 1, 2011. It was expected to produce 200,000 units of product over its estimated useful life of eight years. Total cost of the machine was $600,000, and salvage value was estimated to be $60,000. Actual units produced by the machine in 2011 and 2012 are shown below:
Wings reports on a calendar-year basis and uses the units-of-production method of depreciation. The amount of depreciation expense for this machine in 2012 would be
A) $124,200
B) $90,000
C) $81,000
D) $74,520
Correct Answer:
Verified
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