Answer:
(C) $8,800
Explanation:
Total Cost of Machine = $35,000
Salvage Value = $3,000
Value to be Depreciated = $35,000 - $3,000 = $32,000
Using units of activity method, we have copies to be made by machines = 2,000,000
Depreciation per copy = $32,000/2,000,000 = $0.016 per copy
Depreciation for year 1 = Number of copies [tex]\times[/tex] $0.016
= 550,000 [tex]\times[/tex] $0.016 = $8,800
Final Answer
(C) $8,800
