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1)calculate depreciable value using unitd of production, 2)compute the depretiation expense for year 3) calculate amount of gain or loss from sales of the asset
1)calculate depreciable value using unitd of production,
CookieCat Frozen Treats purchased a new industrial ice cream maker at the beginning of Year 1 for $400,000. The unit is expected to have a 3-year useful life and a $38,000 salvage value. The expected production is estimated at 1,000,000 ice cream bars. Actual ice cream bar production for the 3 years was as follows: The ice cream maker was sold at the end of Year 3 for $42,000 2)compute the depretiation expense for year 3) calculate amount of gain or loss from sales of the asset utlilzinf units of production depreciation.
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