On September 19,2020 Mandella Co purchased machinery for 950,000 Salvage value was estimated to be 50,000 . The machinery will be depreciated over eight years using the sum-of-the- years'-digits method. If depreciation is computed on the basis of the nearest full month, Mandella should record depreciation expense for 2021 on this machinery of a. 96,875 b. 102,257 87,500 d. 193,750 .

To calculate the depreciation expense for 2021 using the sum-of-the-years'-digits method, we need to follow these steps:<br /><br />1. Calculate the sum of the years' digits:<br /> Sum of the years' digits = 1 + 2 + 3 +... + 8 = 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 = 36<br /><br />2. Calculate the depreciable amount:<br /> Depreciable amount = Cost - Salvage value = $950,000 - $50,000 = $900,000<br /><br />3. Calculate the fraction for 2021:<br /> Fraction for 2021 = 7/36 (since 2021 is the 7th year)<br /><br />4. Calculate the depreciation expense for 2021:<br /> Depreciation expense for 2021 = Depreciable amount * Fraction for 2021 = $900,000 * 7/36 = $175,000<br /><br />Therefore, the correct answer is:<br />b. $102,257