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 expense for this period is:

A) $160,000.
B) $800,000.
C) $152,000.
D) $760,000.