Question

Check my work View previous attempt Required information Use the following information for the Quick Studies below. [The following information applies to the questions displayed below.] Part 2 of 2 3.44 points On January 2, 2018, the Matthews Band acquires sound equipment for concert performances at a cost of $65,200. The band estimates it will use this equipment for five years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $2,000. During year 2018, the band performs 55 concerts. eBook References QS 8-4 Units-of-production depreciation LO P1 Compute the year 2018 depreciation using the units-of-production method. Select formula for the depreciation rate of Units of Production: (Cost - Salvage value) / Total units of production Calculate 2018 depreciation expense: Depreciation per concert Concerts in 2018 Depreciation in 2018

Answer 1

data given cost of assets salvage value life (in concerts ) 65200 2000 200 select formula for depreciation rate of units of production (cost-salvage value)/total units of production calculate 2018 depreciation expense depreciation per concert 316 concerts in 2018 55 depreciation in 2018 17380 explanation depreciation in 2018= $316*55 17380 depreciation per unit = (65200-2000)/200= $316 units of production method is one of the depreciation methed, which depreciates the particular asset on the basis of units they produced. It is used when the life of the asset is very close to the produced units.