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Depreciate the equipment using the units of production method The equipment is expected to work 90,000 hours during its 5 year useful life with a
Depreciate the equipment using the units of production method | ||
The equipment is expected to work 90,000 hours during its 5 year useful life with a salvage value of $4,700. The productivity level is as follows: | ||
Year 1 - 30,000 hours; Year 2 - 25,000 hours, Year 3 - 15,000 hours, Year 4 - 12,000 hours, Year 5 - 8,000 hours | ||
Record the depreciation expense for year 3 | ||
Prepare the partial balance sheet at the end of year 3 | ||
The equipment was disposed of (sold) on January 1, Year 5 for $25,000. Prepare the journal entry to record the sale of the truck | ||
Equipment/Machine | ||
Purchase Price | 45,000 | |
Sales Taxes | 3,900 | |
Freight Insurance | 600 | |
Shipping/transport costs | 1,700 | |
Installation and Testing | 1,500 | |
Training costs | 2,000 | |
Total Acquisition cost | 54,700 |
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