QS 10-4 Units-of-production depreciation LO P1 On January 1, the Matthews Bond pays $67,400 for sound equipment. The band estimates it will use this equipment for five years and perform 200 concerts. It estimates that after five years it can sell the equipment for $2.000 During the first year, the band performs 5s concerts Compute the first year depreciation using the units of production method Select formula for the depreciation rate of Units of Production Cost. Salvage value / Total units of production Calculate the first year depreciation expense: Depreciation per concert 5 275.00 Concerts in first year 35 Depreciation in first year $ 15.125