Question: J.B. Enterprises purchased a new molding machine for $75,000. The company paid $6,000 for shipping and another $ 4,000 to get the machine integrated with

J.B. Enterprises purchased a new molding machine for $75,000. The company paid $6,000 for shipping and another $ 4,000 to get the machine integrated with the company’s existing assets. J.B. must maintain a supply of special lubricating oil just in case the machine breaks down. The company purchased a supply of oil for $2,000. The machine is to be depreciated on a straight line basis over its expected useful life of 10 years. What will depreciation expense be during the first year?
a. $7,500b. $8,100c. $8,500d. $8,700

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