A company purchased equipment for $100,000 in 2008. The machine will be used for 10,000 hours with an expected life of 4 years and will have a residual value of $20,000. The equipment was used for 2,400 hours in 2008. How much depreciation will be deducted in 2008 if the company elects the units-of-production method?
a. $19,200
b. $20,000
c. $10,000
d. $24,000
2007-12-02 09:06:43 · 2 answers · asked by misskaye7 1 in Business & Finance ➔ Other - Business & Finance
Well the machine will be used for 24% (2,400/10,0000 of its useful life, before residual value, in 2008. The depreciation is based on the 100,000 - $20,000 (residual value = Machines value at the end of 4 years). So you have 80,000 * 24%. So the answer is A.
2007-12-02 10:23:22 · answer #1 · answered by toledogolf 4 · 0⤊ 0⤋
It's a verified miracle ! Equipment has been purchased in 2008, and we still have one month to go in 2007. That being said, this is another homework question. How do you expect to learn accounting properly if you ask others to solve the problems for you ?
2007-12-02 18:09:56 · answer #2 · answered by acermill 7 · 0⤊ 0⤋