Company bought a new machine on July 1 2016 for $600 000. expected to produce 200 000 units over est useful life (8years). Salvage value est. $60 000.

Estimated production was a) 16 000 units in 2016 b) 30 000 units in 2017.

Company reports on calendar-year basis using units-of-output method of depreciation.

What will the amount of depreciation expense be for this machine in 2017?

A. 74 520

B. 124 000

C. 90 000

D. 81 000