Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines' second year depreciation expense only under the units-of-production method.

Group of answer choices

$16,900

$18,379

$16,000

$20,880

$17,400

Question 2

The book value of a long-term fixed asset is the asset's cost minus any accumulated depreciation.

Group of answer choices

True

False