Wickland Company Installs a Manufacturing Machine in Its Production Facility

Multiple Choice

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product.
- Determine the machines' second year depreciation under the units-of-production method.

A) $16,000.
B) $20,880.
C) $17,400.
D) $18,379.
E) $16,900.