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.What journal entry would be needed to record the machines' second year depreciation under the units-of-production method?

A) Debit Depletion Expense $16,900;credit Accumulated Depletion $16,900.
B) Debit Depletion Expense $16,000;credit Accumulated Depletion $16,000.
C) Debit Depreciation Expense $16,900;credit Accumulated Depreciation $16,900.
D) Debit Depreciation Expense $16,000;credit Accumulated Depreciation $16,000.
E) Debit Amortization Expense $16,900;credit Accumulated Amortization $16,900.