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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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