Assume That Bybee Uses the Units of Production Method When

Multiple Choice

Assume that Bybee uses the units of production method when depreciating its equipment. Bybee estimates that the purchased equipment will produce 1,000,000 units over its 5-year useful life and has salvage value of $17,000. Bybee produced 265,000 units with the equipment by the end of the first year of purchase. Which amount below is closest to the amount Bybee will record for depreciation expense for the equipment in the first year?

A) $96,725
B) $62,600
C) $78,440
D) $82,945