On January 1, 2015, Zade Manufacturing Company Purchased a Machine

Multiple Choice

On January 1, 2015, Zade Manufacturing Company purchased a machine for $40,000,000. The company expects to use the machine for 24,000 hours over the next 6 years. The estimated sale value of the machine at the end of the sixth year is $40,000. The company used the machine for 3,600 hours in 2015 and 5,000 hours in 2016. What is depreciation expense for the year 2015 if the company uses the units-of-production method of depreciation?

A) $5,994,000,
B) $13,333,333
C) $6,666,660
D) $12,222,000