Mohr Company purchases a machine at the beginning of the year at a cost of $28,000. The machine is depreciated using the units-of-production method. The company estimates it will use the machine for 5 years, during which time it anticipates producing 52,000 units. The machine is estimated to have a $2000 salvage value. The company produces 9400 units in year 1 and 6400 units in year 2. Depreciation expense in year 2 is:

A. $2000.
B. $16,800.
C. $11,200.
D. $3200.
E. $5200.


Answer: D

Business

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