Question: Refer to the data in PE 9-14. Using the units-of-production method of depreciation, compute depreciation expense and make the necessary journal entry to record depreciation

Refer to the data in PE 9-14. Using the units-of-production method of depreciation, compute depreciation expense and make the necessary journal entry to record depreciation expense for the first year.

Data from PE 9-14

Cost of machine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000,000
Estimated useful life (years) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 years
Salvage value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000
Estimated useful life (units). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,600,000
Units produced during the fi rst year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,000

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