Question
On January 1, 2018, McHenry Manufacturing Company purchased a machine for $40,800,000. McHenry's management expects to use the machine for 34,000 hours over the next
On January 1, 2018, McHenry Manufacturing Company purchased a machine for
$40,800,000.
McHenry's management expects to use the machine for
34,000
hours over the next six years. The estimated residual value of the machine at the end of the sixth year is
$40,000.
The machine was used for
4,400
hours in 2018 and
6,000
hours in 2019. Calculate the book value of the machine at the end of 2019 if the company uses the
unitsofproduction
method of depreciation. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A.
$35,525,192
B.
$28,332,272
C.
$40,800,000
D.
$28,320,000
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