Compatibility Services acquired an $80,000 machine on January 1,20X3.The machine is estimated to have a useful life of 8 years,and a residual value of $4,000.For units-of-production depreciation purposes,the machine is expected to produce 400,000 units.If Compatibility Services uses straight-line depreciation,what is the depreciation expense in 20X4?
A)$6,686
B)$ 9,500
C)$ 10,000
D)$ 8,000
E)$12,500

Question

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The Answer of Compatibility Services acquired an $80,000 machine on January 1,20X3.The machine is estimated to have a useful life of 8 years,and a residual value of $4,000.For units-of-production depreciation purposes,the machine is expected to produce 400,000 units.If Compatibility Services uses straight-line depreciation,what is the depreciation expense in 20X4?
A)$6,686
B)$ 9,500
C)$ 10,000
D)$ 8,000
E)$12,500

Compatibility Services Acquired an $80,000 Machine on January 1,20X3