Spangle Corporation Uses the Unit-Of-Production Method to Estimate Depreciation

Multiple Choice

Spangle Corporation uses the unit-of-production method to estimate depreciation.The company purchased a new machine for $18,000 that will produce an estimated 100,000 units over its useful life.The estimated residual value of the machine is $2,000.What is the depreciation rate per unit?

A) $1.60
B) $1.80
C) $0.16
D) $0.18