i am stuck on part c of this problem. here are pics of the problem
first pic is the info u need to solve the problem. 2nd pic is the actual problem part C
please include all work/how u got the answers
b) Under Units-of-production depreciation method,
Annual depreciation expense = (Cost of asset-residual value)
X Actual production/ Estimated total production
Here, Original cost= $42,000; Salvage Value= $6,000 and is
expected to produce 2,000,000.
So, depreciation per unit= (42000-6000)/2000000= 0.018.
So, the units-of-production depreciation schedule of the
Units of production
Depreciation cost per
Book value at
end of year
So, the answer is $36,720.
c) In DDB, as salvage value = $6000
& selling price= $5200
So, Loss= 6000-5200=$800.
In Units of production, actual salvage value= $5280
As selling price= $5200, So, loss= 5280-5200=$80.
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