The Antarctica Co

Multiple Choice

The Antarctica Co. acquired a machine on January 1, 2016, at a cost of $60,000. The machine is expected to have a ten-year life and a residual value of $5,000. The estimated lifetime output from the machine is expected to be 55,000 units. Under which of the following depreciation methods would the depreciation charge be the greatest in 2016 if 9,100 units were produced during the year?

A) activity units-of-output) method
B) straight-line method
C) sum-of-the-years'-digits method
D) double-declining-balance method