Melbourne Manufacturing Purchased a Machine for $60 000 on 1

Multiple Choice

Melbourne Manufacturing purchased a machine for $60 000 on 1 January 2015 which is expected to have a 5 year life, no residual value, and to produce a total of 20 000 wingdings before it is scrapped. Assuming the Melbourne Manufacturing uses the units- of-production method and actual production up to 31 December 2015, (the end of the accounting year) is 5000 wingdings, calculate depreciation expense for 2015.

A) $5000
B) $10 000
C) $12 000
D) $15 000