Salta Company installs a manufacturing machines in its factory at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years' or 400,000 units of product, with $7,000 salvage value. During its second year, the machine produces 84,000 units of product. What journal entry would be needed to record the machines' second year depreciation under the units-of-production method?
A. Debit Depletion Expense $16,900; credit accumulated depletion $16,900.
B. Debit Depletion Expense $16,000; credit accumulated depletion $16,000.
C. Debit Depletion Expense $16,900; credit accumulated depreciation $16,900D. Debit Depletion Expense $16,000; credit accumulated depreciation $16,000
E. Debit Depletion Expense $16,900; credit accumulated amortization $16,900

AMHD doesn't do homework - it's posted policy. What do you think the answer is?

First you need to know the Units of Production method for depreciation.

You start with your cost minus your salvage value, then divide this number of total units to produce in the asset's life to get the depreciation rate is for each unit produced.

Now take the rate for each unit produced times the actual number of units produced to get your total depreciation for the year.