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Please, help with the following probleM: On June 1, 2021, Duncan Inc. purchased equipment for $56,000. The equipment had an estimated life of 10 years,
Please, help with the following probleM:
On June 1, 2021, Duncan Inc. purchased equipment for $56,000. The equipment had an estimated life of 10 years, an estimated residual value of $8,000, and was expected to be used to produce 120,000 units over its life. During 2021, the equipment was used to produce 11,250 units and during 2022 it was used to produce 19,630 units. Assume the company employs the units of production method of depreciation. Calculate the amount of accumulated depreciation on the equipment shown in the company's December 31, 2022 balance sheetStep by Step Solution
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