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) $4,000
B) $ 9,500
C) $80,000
D) $8,000


Answer: B) $ 9,500

Business

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Business