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Question 1: On January 1, 2018, Lama Company purchased a machine for $200,000. The company expects to produce 20,000 units over the next 5 years. The estimated salvage value of the machine at the end of the fifth year is $40,000. The company produces 2,500 units in 2018 and 4,200 units in 2019. If the company uses the units-of-activity method of depreciation, the depreciation expense for the year 2018 is:
Select one:
Option a. $20,000
Option b. $32,000
Option c. Another amount
Option d. $33,600
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