Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2020, A Company acquired a machine at a cost of $200,000. A Company estimates that the machine will be used for 4

On January 1, 2020, A Company acquired a machine at a cost of $200,000. A Company estimates that the machine will be used for 4 years or 8,000 machine hours. It estimates that it will sell the machine after 4 years for $20,000. A Company uses the machine for 2,100 and 1,800 machine hours in 2020 and 2021 respectively. What would be the amount of depreciation taken in 2020 if units of production depreciation method was used?

$47,250

$52,500

$45,000

$40,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions