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On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $36,000. A total of $3,800 was paid for installation and
On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $36,000. A total of $3,800 was paid for installation and testing. During the first year, Milton paid $5,700 for insurance on the equipment and another $690 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $7,600. During Year 1, the equipment produced 12,000 units. What is closest to the amount of depreciation for the year? (Do not round intermediate calculations.)
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