Mohr Company purchases a machine at the beginning of the year at a cost of $35,000. 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 62,000 units. The machine is estimated to have a $4,000 salvage value. The company produces 10,100 units in year 1 and 7,100 units in year 2. Depreciation expense in year 2 is:

$3,550.00

Explanation:

Under the units of depreciation method, the amount of depreciable amount is calculating by multiplying the units produced by depreciation per unit.

Depreciation per unit = costs of the asset - residue / expected units to be produced.

=$35,000 -$4000= $31,000

=$31,000/62,000

=$0.5 per unit

Units produced in year 2 were 7100

depreciation will be 7100 X $0.5

=$3,550.00

answer; charters;

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