Question: A concrete and rock crusher for demolition work has been purchased for $60,000, and it has an estimated SV of $10,000 at the end of
A concrete and rock crusher for demolition work has been purchased for $60,000, and it has an estimated SV of $10,000 at the end of its five-year life. Engineers have estimated that the following units of production (in m3 of crushed material) will be contracted over the next five years.
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Using the units of production depreciation method, what is the depreciation allowance in year three, and what is the BV at the end of year two?
EOY 1 23 45 m3 16,000 24,000 36,000 16,000 8,000
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