The Egypt Corporation Purchased a Machine for $40 000 on 1

Multiple Choice

The Egypt Corporation purchased a machine for $40 000 on 1 January 2012 which is expected to have a 5 year life,no residual value,and to produce a total of 20 000 ridgets before it is scrapped.Assuming the Egypt Corporation uses the units-of-production method and actual production up to 31 December 2012,the end of the accounting year) is 5 000 ridgets,calculate depreciation expense for 2012.

A) $12 000
B) $10 000
C) $20 000
D) $8 000