K Units-of-Production Method At the beginning of the year, Cedar Fair purchased a new go-kart Ride for $62,500. The ride has an estimated useful life of 3 years or 100,000 miles and an estimated residual value of $2,500. If the ride is used 30,000 miles in the first year, what is the amount of depreciation expense? Units-of-Production Formula (Cost Residual Value) X Depreciable cost Actual Production This Period Estimated Total Production Depreciation rate ($62,500-$2,500) X 30,000 100,000 Depreciation Expense $18,000

Units-of-Production Method At the beginning of the year. Cedar fair purchosed a new go-kart Ride for $62,500. The ride has an estimated useful life of 3 years or 100,000 miles and an estimated residual value of $2.500. If the ride is used 30,000 miles in the first year, what is the amount of depreciation expense? Units-of-Production Formula (Cost - Residual Value) EstimatedTotalProductionActualProductionThisPeriod= Depreciation Expense Depreciable cost Depreciation rate ($62,500$2,500)100,00030,000=$18,000