Fields company purchased equipment on january 1 for $180,000. this system has a useful life of 8 years and a salvage value of $20,000. the company estimates that the equipment will produce 40,000 units over its 8-year useful life. actual units produced are: year 1 – 4,000 units; year 2 – 6,000 units; year 3 – 8,000 units; year 4 – 5,000 units; year 5 – 4,000 units; year 6 – 5,000 units; year 7 – 7,000 units; year 8 – 3,000 units. what would be the depreciation expense for the second year of its useful life using the units-of-production method? a) 20,000 b) 16,000 c) 24,000 d) 45,000 d) 33,750

C-$24,000

Explanation:The units of production method is a method of depreciation where depreciation expense allocated in a year corresponds to the actual use of the asset.

Units of production method = [(Original cost of the machine - salvage value)÷ estimated productive capacity of the machinery] × actual units produced.

The cost of the equipment- $180,000

Salvage value = $ 20,000

Estimated productive capacity- 40,000

Actual production in year 2 - 6000 units

Depreciation expense in year 2 = ( 180000 - 20,000) ÷ 40,000 = $ 4

4 × 6000= $24,000

i might look it up later.

answer/// equals both average variable cost and average total cost at their respective minimums;