On January 1, 2024, Tyson Manufacturing Corporation purchased a machine for $40,000,000. Tyson's management expects to use the machine for 29,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $40,000. The machine was used for 4,600 hours in 2024 and 5,700 hours in 2025. What is the depreciation expense for 2024 if the corporation uses the units - of - production method of depreciation? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) O A. $13,333,333 O B. $6,344,826 OC. $7,854,201 O D. $6,338,478

On January 1, 2024, Tyson Manufacturing Corporation purchased a machine for $40,000,000. Tyson's management expects to use the machine for 29,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $40,000. The machine was used for 4,600 hours in 2024 and 5,700 hours in 2025. What is the depreciation expense for 2024 if the corporation uses the units - of - production method of depreciation? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) O A. $13,333,333 O B. $6,344,826 OC. $7,854,201 O D. $6,338,478

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...

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Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
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On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000