What journal entry would be needed to record the machines' first year depreciation under the units-of-production method?

A) Debit Depletion Expense $25,800; credit Accumulated Depletion $25,800.
B) Debit Depletion Expense $29,025; credit Accumulated Depletion $29,025.
C) Debit Depreciation Expense $29,025; credit Accumulated Depreciation $29,025.
D) Debit Depreciation Expense $25,800; credit Accumulated Depreciation $25,800.
E) Debit Amortization Expense $24,000; credit Accumulated Amortization $24,000.

Under the units-of-production method, depreciation is calculated based on the machine's usage or production activity. To calculate the depreciation expense, we need to find the depreciation rate per unit:

Depreciation rate per unit = (cost of machine - salvage value) / total units of production
Depreciation rate per unit = ($135,000 - $15,000) / 300,000
Depreciation rate per unit = $0.40 per unit

To find the depreciation expense for the first year, we multiply the depreciation rate per unit by the number of units of production in the first year:

Depreciation expense = depreciation rate per unit x units of production in first year
Depreciation expense = $0.40 x 64,500
Depreciation expense = $25,800

Therefore, the journal entry needed to record the machine's first year depreciation would be:

Debit Depreciation Expense $25,800
Credit Accumulated Depreciation $25,800