On October 1, 2021, the Allegheny Corporation purchased equipment for $314,000. The estimated service life of...
On October 1, 2021, the Allegheny Corporation purchased
equipment for $314,000. The estimated service life of the equipment
is 10 years and the estimated residual value is $6,000. The
equipment is expected to produce 550,000 units during its
life.
Required:
Calculate depreciation for 2021 and 2022 using each of the
following methods. Partial-year depreciation is calculated based on
the number of months the asset is in service.
3. Units of production (units produced in 2021, 28,000; units produced in 2022, 43,000). (Round "Depreciation per unit rate" answers to 2 decimal places.)
Homework Answers
Depreciation expense per unit = (314,000-6,000)/550,000
= 0.56 per unit
Depreciation for
2021 = 28,000*0.56 = 15,680
2022 = 43,000*0.56 = 24,080
Add Answer to:
On October 1, 2021, the Allegheny Corporation purchased
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On October 1, 2021, the Allegheny Corporation purchased equipment for $314,000. The estimated service life of the equipment is 10 years and the estimated residual value is $6,000. The equipment is expected to produce 550,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 2. Double-declining balance
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