Copy equipment was acquired at the beginning of the year at a cost of $38,600 that has an estimated residual value of $3,500 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,170,000 copies. This year, 268,000 copies were made. a. Determine the depreciable cost. $fill in the blank 1 b. Determine the depreciation rate. Round your answer to two decimal places. $fill in the blank 2 per copy c. Determine the units-of-output depreciation for the year. $fill in the blank 3
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Copy equipment was acquired at the beginning of the year at a cost of $38,600 that has an estimated residual value of $3,500 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,170,000 copies. This year, 268,000 copies were made.
a. Determine the
$fill in the blank 1
b. Determine the depreciation rate. Round your answer to two decimal places.
$fill in the blank 2 per copy
c. Determine the units-of-output depreciation for the year.
$fill in the blank 3
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