单选题

Using the following information, a Mexican corporation is computing the depreciation expense for apiece of manufacturing equipment that it purchased at the start of the current year. The company takes a full year's depreciation in the year of acquisition.

Cost of equipment	MXN2,000,000
Estimated residual value	MXN200,000
Expected useful life	10 years
Total productive capacity	5,000,000 units
Production during year	800,000 units

The depreciation expense (in MXN) will most likely be higher by:

A、 112,000, using the double-declining method compared with the units-of-production method.
B、 140,000, using the units-of-production method compared with the straight-line method.
C、 180,000, using the double-declining balance method compared with the straight-line method.

【正确答案】 A

【答案解析】

The difference between the double-declining balance method and the units-of-production method(in MXN)is 400,000-288,000 = 112,000.