What is the depreciation expense in the following case?Ace company purchased a machine valued at $320,000 on August 1. The equipment has an...

We are given the initial cost of the machine as $320,000
and it is expected to produce 2.5 million units. The question provides information which
asks for the application of many methods of calculating depreciation simultaneously,
which is not possible to do.

Using the units of production
method of depreciation doesn’t require the useful lifespan or the salvage
value.

The depreciation expense according to this method is
given by (depreciation expense per unit)*(number of units produced). The depreciation
expense per unit is given by (initial cost)/ (estimated number of units that can be
produced)

For the given machine the depreciation expense is
(320,000/2,500,000). The number of units manufactured is 710,000. This gives the total
depreciation expense as (320,000/2,500,000)*710,000 = $
90880.

The required depreciation expense is
given by option C and is equal to $90880.