On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $25,000. A total of $1,600 was paid for installation and testing. During the first year, Milton paid $2,400 for insurance on the equipment and another $580 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $3,200. During Year 1, the equipment produced 14,000 units. What is the amount of depreciation for Year 1?

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Answer Step 1 Calculation of Cost of Equipment Cost of EquipmentList PriceInstallation and Testing ... View the full answer