Good Life Clubs purchased exercise equipment at a cost of $100,000 each. In addition, Good Life paid

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Good Life Clubs purchased exercise equipment at a cost of $100,000 each. In addition, Good Life paid $2,000 for a special platform on which to stabilize the equipment for use. Freight costs of $2,500 to ship the equipment were paid by the equipment supplier. Good Life will depreciate the equipment by the units-of-production method, based on an expected useful life of 50,000 hours of exercise. The estimated residual value of the equipment is $10,000. How many hours of usage can Good Life expect from the equipment if budgeted depreciation expense is $10,304 for the year?

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Financial Accounting

ISBN: 978-0133472264

5th Canadian edition

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

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