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On April 1, 2020, Elway Inc purchases a piece of equipment for $55,000. The equipment has a $3,000 salvage value and a useful life of
On April 1, 2020, Elway Inc purchases a piece of equipment for $55,000. The equipment has a $3,000 salvage value and a useful life of 4 years or 130,000 units of production.
If Elway uses the Units of Production method of calculating depreciation, what is the depreciation rate per unit produced?
Group of answer choices
$0.40
$0.42
$0.45
$2.36
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