Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Best Life Clubs purchased exercise equipment at a cost of $98,000 each. In addition, Best Life paid $1,960 for a special platform on which to

image text in transcribed

Best Life Clubs purchased exercise equipment at a cost of $98,000 each. In addition, Best Life paid $1,960 for a special platform on which to stabilize the equipment for use. Freight costs of $2,350 to ship the equipment were paid by the equipment supplier. Best 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 $8,500. How many hours of usage can Best Life expect from the equipment if budgeted depreciation expense is $10,000 for the year? The depreciation for each unit (hour) of use is (Round your answer to two decimal places.) The number of units (hours) included in the expense of $10,000 is . (Hold the decimals for interim calculations. Round your final answer to the nearest whole dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions