Marshall Company purchases a machine for $600,000. The machine has an estimated residual value of $120,000. The company expects the machine to produce eight million units. The machine is used to make 460,000 units during the current period. If the units-of-production method is used, the depreciation expense for this period is:

Multiple Choice

• $27,600.

• $460,000.

• $340,000.

• $34,500.