Marshall Company Purchases a Machine for $800,000

Multiple Choice

Marshall Company purchases a machine for $800,000.The machine has an estimated residual value of $40,000.The company expects the machine to produce two million units.The machine is used to make 400,000 units during the current period. If the units-of-production method is used,the depreciation rate is:

A) $1.90 per unit.
B) $0.38 per unit.
C) $0.10 per unit.
D) $2.00 per unit.