Question
A new machine for a bottle factory was purchased in February 2013 for $900,000. The machine has an estimated production capacity of 1,500,000 bottles and
A new machine for a bottle factory was purchased in February 2013 for $900,000. The machine has an estimated production capacity of 1,500,000 bottles and no residual value. The machine produced the following number of bottles over the past four years: 2013 - 420,000 bottles, 2014 - 405,000 bottles, 2015 - 390,000 bottles, 2016 - 315,000 bottles. Assuming the company uses the units-of-production method, complete the following table.
Year Cost of Long-Term Asset Depreciation Expense Accumulated Depreciation To Date Net Book Value
2013 $900,000 ? ? ?
2014 $900,000 ? ? ?
2015 $900,000 ? ? ?
2016 $900,000 ? ? ?
Please explain how to calculate each part?
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