Helena Mayo Inc. acquired a piece of equipment January 1, 2021. The company is now computing...

  

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Helena Mayo Inc. acquired a piece of equipment January 1, 2021. The company is now computing the depreciation expense for the piece of manufacturing equipment for the fiscal year ended December 31, 2021. The following information was provided: Cost of equipment $1,200,000 Estimated residual value $200,000 Expected useful life 8 years Total productive capacity 800,000 units Production in FY 2021 135,000 units Expected production in 95,000 units each year the next 7 years If the company uses the units-of-production method, the amount of depreciation expense on the income statement related to the manufacturing equipment is closest to: a) $118,750. b) $168,750. c) $202,500. d) $142,500 Helena Mayo Inc. acquired a piece of equipment January 1, 2021. The company is now computing the depreciation expense for the piece of manufacturing equipment for the fiscal year ended December 31, 2021. The following information was provided: Cost of equipment $1,200,000 Estimated residual value $200,000 Expected useful life 8 years Total productive capacity 800,000 units Production in FY 2021 135,000 units Expected production in 95,000 units each year the next 7 years If the company uses the units-of-production method, the amount of depreciation expense on the income statement related to the manufacturing equipment is closest to: a) $118,750. b) $168,750. c) $202,500. d) $142,500

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