Isolation Inc. purchased a machine for $450,000. The machine has a $2,000 residual value and is...
| Isolation Inc. purchased a machine for $450,000. The machine has a $2,000 residual value and is expected to produce 1,500,000 units. | ||||||||||||
| What is the depreciation per unit? | ||||||||||||
| If in year one the machine produces 225,000 units, what would depreciation be? | ||||||||||||
| If in year two the machine produces 1,000,000 units, what would depreciation be? | ||||||||||||
Homework Answers
a.depreciation per unit=(Cost-Residual value)/Useful Life
=(450,000-2000)/1,500,000=$0.29867 per unit(Approx)
b.Depreciation =0.29867*225,000
=$67200
c.Depreciation =0.29867*1,000,000
=$298666.67(Approx).
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