At the beginning of 2013, your company buys a $34,400 piece of equipment that it

Question

At the beginning of 2013, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The company expects to produce a total of 200,000 units. The equipment has an estimated residual value of $4,000 a. Compute the depreciable cost. b. Compute the depreciation expense per year under the straight-line method Depreciation Expense per ýear c. Compute the depreciation rate per unit under the units-of-production method (Round your answer to 2 declmal places.) preciation Rate Por Unit Type here to search acer

Explanation / Answer

Depreciable cost = $34400 - $4000 = $30400

Depreciation expense = $30400 x 1/4 = $7600

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