Question
On October 1, 2021, the Allegheny Corporation purchased equipment for $203,000. The estimated service life of the equipment is 10 years and the estimated residual
On October 1, 2021, the Allegheny Corporation purchased equipment for $203,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 300,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service.
3. Units of production (units produced in 2021, 18,000; units produced in 2022, 33,000). (Round "Depreciation per unit rate" answers to 2 decimal places.)
Select formula for Units of Production Depreciation:
(Cost-Salvage)/Total units of production
Calculate 2021 depreciation expense:
Depreciation per unit rate: ?
Units Produced in 2021: ?
Depreciation in 2021: ?
Calculate 2022 depreciation expense:
Depreciation per unit rate: ?
Units Produced in 2022: ?
Depreciation in 2022: ?
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