Question: A heavy construction firm has been awarded a contract to build a large concrete dam. It is expected that a total of 8 years will
A heavy construction firm has been awarded a contract to build a large concrete dam. It is expected that a total of 8 years will be required to complete the work. The firm will buy $600,000 worth of special equipment for the job. During the preparation of the job cost estimate, the following utilization schedule was computed for the special equipment:
Utilization Utilization
Year (hr/yr) Year (hr/yr)
1 6000 5 800
2 4000 6 800
3 4000 7 2200
4 1600 8 2200
At the end of the job, it is estimated that the equipment can be sold at auction for $60,000.
(a) Compute the sum-of-years-digits' depreciation schedule.
(b) Compute the unit-of-production depreciation schedule.
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a SOYD Depreciation N 8 SUM N2 N1 36 1 st Year SOYD ... View full answer

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