Question
Reminder - Here is the information relating to the equipment of the company Production Inc: Purchase on January 1 X5 $ 100,000 Estimated useful life
Reminder - Here is the information relating to the equipment of the company Production Inc:
Purchase on January 1 X5 $ 100,000
Estimated useful life 5 years
Estimated residual value $ 10,000
Total hours of intended use 10,000 hours
Number of hours of use in X5 3000 hours
Number of hours of use in X6 2,500 hours
declining depreciation rate 35%
If the Production company were to use the usage-proportional depreciation method (according to production units) for its equipment, the depreciation expense for year X6 would be: How would be the depreciation expense for year X6?
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