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Augusta Comp purchased equipment for 300,000 on april 1, 2016. Estimated useful life of 20 years and salvage value of 20,000. Estimated production is 40,000
Augusta Comp purchased equipment for 300,000 on april 1, 2016. Estimated useful life of 20 years and salvage value of 20,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2016, the equipment worked for 2,000 hours and produced 2,000 units. Compute depreciation expense under activity method (units produced).
A. 14,000
B. 10,500
C. 15,000
D. 28,000
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