A machine is purchased January 1 at a cost of $85,820. It is expected to produce 166,000
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Question:
A machine is purchased January 1 at a cost of $85,820. It is expected to produce 166,000 units and have a salvage value of $2,820 at the end of its useful life.
Units produced are as follows:
Year 1 | 10,300 |
Year 2 | 8,500 |
Year 3 | 11,400 |
Year 4 | 16,300 |
Year 5 | 10,600 |
Required:
Prepare a schedule showing depreciation for each year and the book value at the end of each year using the units-of-production method (round calculations to two decimal places).
Units-of-Production Method | |||
Year | Beginning Book Value | Annual Depreciation | Ending Book Value |
1 | |||
2 |
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