Papaya, a specialty greeting card company, purchased a photocopier costing $45,000 on January 1, 2020. The equipment
Question:
Papaya, a specialty greeting card company, purchased a photocopier costing $45,000 on January 1, 2020. The equipment is expected to produce a total of 4,000,000 copies over its productive life. Its residual value at the end of its useful life is estimated to be $5,000. The equipment actually produced:
Fiscal Year ................................. Copies Produced
2020 .......................................................... 650,000
2021 .......................................................... 798,000
2022 .......................................................... 424,000
2023 .......................................................... 935,000
2024 ....................................................... 1,193,000
Calculate depreciation for 2020 through to 2024 using the units-of-production method. Papaya’s year-end is December 31.
Step by Step Answer:
Fundamental Accounting Principles Volume I
ISBN: 978-1260305821
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann