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On April 22, 2023, Blossom Enterprises purchased equipment for $129,600. The company expects to use the equipment for 10,500 working hours during its four-year life
On April 22, 2023, Blossom Enterprises purchased equipment for $129,600. The company expects to use the equipment for 10,500 working hours during its four-year life and that it will have a residual value of $12,000. Blossom has a December 31 year end and pro-rates depreciation to the nearest month. The actual machine usage was: 1,500 hours in 2023; 2,500 hours in 2024; 3,500 hours in 2025; 2,200 hours in 2026; and 1,000 hours in 2027. Prepare a depreciation schedule for the life of the asset under the units-of-production method. (Round depreciation amount per unit to 2 decimal places, eg. 2.25 and final answers to 0 decimal places, e.g. 5,276.) Prepare a depreciation schedule for the life of the asset under the units-of-production method. (Round depreciation amount per unit to 2 decimal places, eg. 2.25 and final answers to 0 decimal places, eg. 5,276.)
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