The Widget Tool and Die Company Buys a $400,000 Stamping

Multiple Choice

The Widget Tool and Die Company buys a $400,000 stamping machine that has an estimated residual value of $20,000.The company expects the machine to produce two million units.It makes 400,000 units during the current period.If the units-of-production method is used,the depreciation expense for this period is:

A) $80,000.
B) $400,000.
C) $76,000.
D) $380,000.