3.

a. A company purchased a machine for $40,000. It has an estimated useful life of 25,000 product units and a scrap value of $100 at the end of its useful life. The machine produced 2,000 units during the first year and 3,500 units during the second year. Use the product units method to find the total depreciation charges for the first two years.

	a.	$8,751
	b.	$8,778
	c.	$8,804
	d.	$8,820

b.

A piece of equipment was purchased for $100,000. It has an estimated useful life of 2,200,000 product units and a scrap value of $300 at the end of its useful life. During the first year, the machine produced 200,000 units. Use the product units method to find the depreciation amount for the first year.

	a.	$9,025.50
	b.	$9,037.72
	c.	$9,042.85
	d.	$9,063.64