8. Long Lived Assets
Depreciation: Units-of-Activity
Multiple Choice
Multiple ChoiceXYZ Company purchased a machine on January 1, 2018 for $110,000. The company estimated a 20,000 unit useful life and $10,000 residual value. XYZ produced 8,000 units in 2018; 6,000 units in 2019; and 10,000 units in 2020. If the company uses the units-of-production method for depreciation, what will be the amount of depreciation expense for the year 2020?
A
$30,000
B
$40,000
C
$50,000
D
None of the above
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