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Use the following information for a Long-Term asset, and answer the questions listed below, using Unit-Production method: Cost: $54,000 life time: 4 years Residual:$5000 Production
Use the following information for a Long-Term asset, and answer the questions listed below, using Unit-Production method: Cost: $54,000 life time: 4 years Residual:$5000 Production life: 100,000 units Production in year one: 20,000 production in year two: 25,000 units a. How much is the amount of depreciation in year-1? Oa. $11,000 Ob. $10,800 Oc. $10,000 Od. $9,800 b. How much is the amount of depreciation in year-2? Oa. $11,500 Ob. $12,250 Oc. $11,250 Od. $12,500 c. How much is the Book-Value of asset at the beginning of year-3? Oa. $32,950 Ob. $31,500 Oc. $32,500 Od. $31,950 d. How much will the last Book-Value be for the above asset? Oa. $0 Ob. $54,000 Oc. $4,500 Od. $5,000
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