Question
The information given was: E9-5 - Gotham Company purchased a new machine on October 1, 2017, at a cost of $90,000. The company estimated that
The information given was: E9-5 - Gotham Company purchased a new machine on October 1, 2017, at a cost of $90,000. The company estimated that the machine has a salvage value of $8,000. The machine is expected to be used for 70,000 working hours during its 8-year life. In the screenshot below part B, it is asking me to solve for the units of activities for 2017 assuming the machine usage was 480 hours. I started to solve this problem by first finding the depreciation value and got stuck after that. My Question is how would I calculate the units of activity in 2017?
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