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Cheshire Corporation purchases a machine for $155,000. It has an estimated salvage value of $20,000 and is expected to produc

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Answer #1

C. $19,575

Depreciation per unit = (Cost - Salvage value) / Total units of production

Depreciation per unit = ($155,000 - $20,000) / 100,000 units

Depreciation per unit = $1.35 per unit

Depreciation for the first year = 14,500 units × $1.35

Depreciation for the first year = $19,575

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