Question
Computing depreciation. three methods Mama's Fried Chicken bought equipment on January 22, 2018, for $36,000. The equipment was expected to remain in service for four
Computing depreciation. three methods
Mama's Fried Chicken bought equipment on January 22, 2018, for $36,000. The equipment was expected to remain in service for four years and to operate for 10,000 hours. At the end of theequipment's usefullife, Mama's estimates that its residual value will be $ 6,000. The equipment operated for 1,000 hours the firstyear, 3,000 hours the secondyear, 4,000 hours the thirdyear, and 2,000 hours the fourth year.
Prepare a depreciation schedule using theunits-of-production method.
unit of production depreciation schedule
Before calculating theunits-of-production depreciationschedule, calculate the depreciation expense per unit. Select theformula, then enter the amounts and calculate the depreciation expense per unit.
(Cost-Residual value) /Useful life in units=Depreciation per unit
($36,000-$6,000) /10,000=$3
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