单选题

A Mexican corporation is computing the depreciation expense of a piece of manufacturing equipment for the fiscal year ended December 31, 2010 using the information below. The company takes a full year’s depreciation in the year of acquisition.

Date of purchase	January 1, 2010
Cost of equipment	MXN2,000,000
Estimated residual value	MXN200,000
Expected useful life	10 years
Total productive capacity	5,000,000 units
Production in 2010	800，000 units

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

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

【正确答案】 C

【答案解析】

The difference between the double declining balance and units-of-production is: 400,000 – 288,000 = 112,000.