If $16,000$ units of product are produced in $2021$ and $24,000$ units are produced in $2022,$ what is the book value of the equipment at December $31,2022?$ The company uses the units$-$of$-$activity depreciation method.

Book value at December $31,2022$

Ayayai Corp. purchased equipment on January $1,2021$ for $$117,000.$ It is estimated that the equipment will have a $$6,500$ salvage value at the end of its $5-$year useful life. It is also estimated that the equipment will produce $130,000$ units over its $5-$year life.

Answer the following independent questions.

$($a$)$

Your answer is correct.

Compute the amount of depreciation expense for the year ended December $31,2021$ using the straight$-$line method of depreciation.

Straight$-$line method

$ per year

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$($b$)$

Your answer is incorrect.

If $16,000$ units of product are produced in $2021$ and $24,000$ units are produced in $2022,$ what is the book value of the equipment at December $31,2022?$ The company uses the units$-$of$-$activity depreciation method.

Book value at December $31,2022$

$