Question: On April 2 2 , 2 0 2 3 , Ivanhoe Enterprises purchased equipment for $ 1 3 3 , 5 0 0 . The

On April 22,2023, Ivanhoe Enterprises purchased equipment for $133,500. The company expects to use the equipment 12,000 working hours during its four-year life and that it will have a residual value of $13,500. Ivanhoe has a December 31 year end and prorates depreciation to the nearest month. The actual machine usage was: 1900 hours in2023; 2500 hours in 2024; 3800 hours in2025; 2800 hours in 2026; and 1200 hours in 2027. Prepare a depreciation schedule for the life of the asset under the units-of-production method.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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

Students Have Also Explored These Related Accounting Questions!