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Mohr Company purchases a machine at the beginning of the year at a cost of $48,000. The machine is depreciated using the units-of- production method.

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Mohr Company purchases a machine at the beginning of the year at a cost of $48,000. The machine is depreciated using the units-of- production method. The company estimates it will use the machine for 5 years, during which time it anticipates producing 86,000 units. The machine is estimated to have a $5,000 salvage value. The company produces 11,000 units in year 1 and 8,000 units in year 2. Depreciation expense in year 2 is: 1 Multiple Choice $5,000 0 $8,600. $19,200. O $4,000

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