Question

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On January 1, 2021, the Allegheny Corporation purchased equipment for $146,000. The estimated service life of the equipment is 10 years and the estimated residual value is $3,000. The equipment is expected to produce 220,000 units during its life.

Required:
Calculate depreciation for 2021 and 2022 using each of the following methods.

3. Units of production (units produced in 2021, 38,000; units produced in 2022, 33,000). (Round "Depreciation per unit rate" answers to 2 decimal places.)

	Select formula for Units of Production Depreciation: Calculate 2021 depreciation expense: Depreciation per unit rate Units produced in 2021 Depreciation in 2021 Calculate 2022 depreciation expense: Depreciation per unit rate Units produced in 2022 Depreciation in 2022

Answer 1

© Units of production method Depreciation rate ( cost. - Salvage value) Expected number of units , $ 346000- $.3000 320,000 ) = 8.143000.1 (220,000) *$0.65 per uncil Deprecialion expenses a 2021 : Depreciation, Actual I per uned rate units produced = ($0.65 X 38000) Fla4700] (Ans) 2022 : Depurecipe for me x Actual units) I penuncitrate x produced ) :: ($0.65 X 33000 ) $(2:1450 Cons) Seleed formula forkoutef Production Depreciation i Solcelalec2021 depreciadion expenses : Depreciation per cineid toote $_0.65 encil produced in 2021 --38000 Depreciation in 2021 13_24700 Caleulale 2022 depreciation eppense : Depreciation per canil nafe [10.65 und produced in 2022 E Depreciation in 2022_ $ 21450 33 000