Question: Equipment was purchased at the beginning of 2011 for $100,000 with an estimated product life of 300,000 units. The estimated salvage value was $4,000. During

Equipment was purchased at the beginning of 2011 for $100,000 with an estimated product life of 300,000 units. The estimated salvage value was $4,000. During 2011, 2012, and 2013, the equipment produced 80,000 units, 120,000 units, and 40,000 units, respectively. The machine was damaged at the beginning of 2014, and the equipment was scrapped with no salvage value.
1. Determine depreciation using the productive-output method for 2011, 2012, and 2013.
2. Give the entry to write off the equipment at the beginning of 2014.

Step by Step Solution

3.35 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

1 Depreciation rate per thousand units produced 100000 4000 300 320 End of Year Unit Ou... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1121-B-A-C-A-R(4092).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Related Book