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use the Units of activity method to compute depreciation assuming that the total units of production during the life of the equipment is 30,000 units
use the Units of activity method to compute depreciation assuming that the total units of production during the life of the equipment is 30,000 units
The answer:
1- The depreciation per unit =
The production for each year:
Year | Production |
2014 | 8000 |
2015 | 9000 |
2016 | 7000 |
2017 | 6000 |
2- Complete the following table:
Year | Production | Depreciation exp. (income statement) | Accumulated depreciation (balance sheet) | Book value = Cost accumulated depreciation |
2014 |
|
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
|
2017 |
|
|
|
|
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