None On January 1, 2018, McHenry Manufacturing Companypurchased a machine for $40,900,000. McHenry'smanagement expects to use the machine for 28,000 hours overthe next six years. The estimated residual value of the machineat the end of the sixth year is $44,000. The machine was usedfor 3,900 hours in 2018 and 5,900 hours in 2019. Calculate thebook value of the machine at the end of 2019 if the companyuses the units-of-production method of depreciation.A. $40,900,000B. $35,209,354C. $26,585,042D. $26,600,428

Step 1: Depreciable amount Depreciable amount = Original cost - Residual valueDepreciable amount =…

Answered: On January 1, 2018, McHenry…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 13P

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