Question

Sweet of $60.000 is expected to have a fe of 1000 hours. During August, the man was operated 700 hours. What amount should be recorded as Equipment with a cout of $390.000 and estimatedraduate depreciation expense for the month ооо О милея,

Answer 1

Answer is $7,700

Cost of Equipment = $390,000
Residual Value = $60,000
Useful Life = 30,000 hours

Depreciation per hour = (Cost of Equipment - Residual Value) / Useful Life
Depreciation per hour = ($390,000 - $60,000) / 30,000
Depreciation per hour = $330,000 / 30,000
Depreciation per hour = $11.00

Depreciation Expense for August = Depreciation per hour * Number of hours
Depreciation Expense for August = $11.00 * 700
Depreciation Expense for August = $7,700