Question: An item of equipment acquired on January 1 at a cost

An item of equipment acquired on January 1 at a cost of $60,000 has an estimated use of 25,000 hours. During the first three years, the equipment was used 5,000 hours, 6,000 hours, and 4,000 hours, respectively. The estimated salvage value of the equipment is $10,000.

Required
Determine the depreciation for each of the three years, using the unit-of-production method.


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  • CreatedJune 22, 2012
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