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On August 31, 2018. ABC Corp (with a December 31 year end) purchased a piece of machinery for $450,000. This machinery is used to produce
On August 31, 2018. ABC Corp (with a December 31 year end) purchased a piece of machinery for $450,000. This machinery is used to produce inventory. The estimated salvage value of this machinery is $50,000. The estimated useful life 195 years. ABC Corp estimates that this machinery will produce 1,000,000 units of inventory over its useful life. Actual activity for 2018-2020 is as follows: 2018: 100,000 units of inventory produced 2019: 275,000 units of inventory produced 2020: 300,000 units of Inventory produced What is the book value of this machinery as of December 31, 2019 assuming ABC Corp uses thedouble- declining balance depreciation method? $234,000 $200,000 $225,000 $375,000
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