Molly's Manufacturing Purchased a Machine for $80 000 on 1

Multiple Choice

Molly's Manufacturing purchased a machine for $80 000 on 1 January 2018. The machine is expected to have a useful life of 5 years, no residual value, and to produce a total of 50 000 units before it is scrapped. Assuming Molly's Manufacturing uses the units-of-production method and actual production during the machine's first year of use is 12 000 units, the depreciation expense for 2018 is:

A) $7 500
B) $12 000
C) $16 000
D) $19 200