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On July 1, 2022, JUMP Company purchased a machine for $65,000. The machine, which will be depreciated using the units of production method, was assigned a $7,500 residual value and a 10-year life. The machine is expected to be used to produce a total of 125,000 units over its useful life. The machine was used to produce 8,200 units in 2022 and 14,900 units in 2023.
Question 1: The amount of accumulated depreciation related to the machine that would appear JUMP Company's December 31, 2023 balance sheet would be equal to:
Group of answer choices
Option 1: $8,625
Option 2: $8,740
Option 3: $9,275
Option 4: $9,880
Option 5: $10,488
Option 6: $11,500
Option 7: $12,012
Option 8: none of the above choices are correct
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