Question
On January 1, 2016, Milton Manufacturing Company purchased equipment with a list price of $27,000. A total of $2,000 was paid for installation and testing.
On January 1, 2016, Milton Manufacturing Company purchased equipment with a list price of $27,000. A total of $2,000 was paid for installation and testing. During the first year, Milton paid $3,000 for insurance on the equipment and another $600 for routine maintenance and repairs. Innovative uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $4,000. During 2016, the equipment produced 14,000 units. What is closest to the amount of depreciation for the year? $4,004 $3,500 $4,480 $3,920 |
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