Question: John Ltd. uses the units-of-production depreciation method. A new asset is purchased for $27,000 that will produce an estimated 125,000 units over its useful life.

John Ltd. uses the units-of-production depreciation method. A new asset is purchased for $27,000 that will produce an estimated 125,000 units over its useful life. Estimated residual value is $2,000. What is the depreciable cost per unit? A) $0.20 B) $2.20 C) None of the presented choices D) $0.22 E)$2.16

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