Webcke Limited Acquired an Item of Machinery with an Expected

Multiple Choice

Webcke Limited acquired an item of machinery with an expected useful life of 4 years. The expected total production output over this period was: year 1, 30 000 units; year 2, 25 000 units; year 3, 15 000 units; year 4, 10 000 units. The machinery cost $85 000 and the residual value is $15 000. The amount of depreciation expense recorded in the first year is:

A) $26 250.
B) $31 875.
C) $21 875.
D) $17 500.