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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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