Marshall Company purchases a machine for $795,000 and paid $2,000 for delivery and $3,000 for installation and testing prior to putting the machine into use; routine maintenance is planned for the current year, which is expected to cost approximately $1,000. The machine has an estimated residual value of $40,000. The company expects the machine to produce two million units over its life. The machine is used to make 400,000 units during the first period. If the units-of-production method is

Marshall Company purchases a machine for $795,000 and paid $2,000 for delivery and $3,000 for installation and testing prior to putting the machine into use; routine maintenance is planned for the current year, which is expected to cost approximately $1,000. The machine has an estimated residual value of $40,000. The company expects the machine to produce two milion units over its life. The machine is used to make 400,000 units during the first period. If the units-of-production method is used, what is the book value of the equipment at the end of the first period? Multiple Choice $643,000 $648,000 $800,000. $645,000