Question
On October 1, 2021, Genappe, Corp. purchased a piece of machinery for $685,000. The estimated salvage value of this new equipment is $62,000 and its
On October 1, 2021, Genappe, Corp. purchased a piece of machinery for $685,000. The estimated salvage value of this new equipment is $62,000 and its estimated useful like is 12 years or 3,000,000 units produced. The new machinery produced 50,000 units in 2021 and 240,000 units in 2022.
Assuming Genappe, Corp. properly follows GAAP for PPE purchased in the middle of a fiscal period, what will the company report as depreciation expense in 2021? Assume the company uses the units of production method.
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
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