Help Save & Exit S A company purchased a weaving machine for $307320. The machin

Question

Help Save & Exit S A company purchased a weaving machine for $307320. The machine has a useful life of 8 years and a residual value of $17000. It is estimated that the machine could produce 764,000 bolts of woven fabric over its useful life. In the first year, 112,000 bolts were produced. In the second year, production increased to 116,000 units. Using the units-of production method, what is the amount of depreciation expense that should be recorded for the second year? Multiple Choice $42,560 $46,661 $45,052 Nex re to search SAMSUNG

Explanation / Answer

Answer

42560

$ Cost of Machine 307320 Less: Residual Value -17000 290320 Estimated useful life is 8 years Estimated production is 764,000 bolts Dpreciation per unit ($ 290,320/764,000 units) 0.38 Dpreciation for 1st year-112,000 bolts 42560

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.