Question
On January 1, 2016, Hobart Mfg. Co. purchased a drill press at a cost of $42,600. The drill press is expected to last 10 years
On January 1, 2016, Hobart Mfg. Co. purchased a drill press at a cost of $42,600. The drill press is expected to last 10 years and has a residual value of $6,600. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2016 and 2017, 28,000 and 90,000 units, respectively, were produced.
Required: |
Compute depreciation for 2016 and 2017 and the book value of the drill press at December 31, 2016 and 2017, assuming the sum-of-the-years'-digits method is used. (Round your intermediate calculations to the nearest whole dollar amount.) 2016 2017 |
Depreciation Book Value |
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