Copy equipment was acquired at the beginning of the year at a cost of $62,460 that has an estimated residual value of $5,700 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 946,000 copies. This year, 267,000 copies were made. a. Determine the depreciable cost. b. Determine the depreciation rate. per copy c. Determine the units-of-output depreciation for the year.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
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Copy equipment was acquired at the beginning of the year at a cost of $62,460 that has an estimated residual value of $5,700 and an estimated useful
life of 5 years. It is estimated that the machine will output an estimated 946,000 copies. This year, 267,000 copies were made.
a. Determine the depreciable cost.
b. Determine the depreciation rate.
per copy
c. Determine the units-of-output depreciation for the year.
Transcribed Image Text:Copy equipment was acquired at the beginning of the year at a cost of $62,460 that has an estimated residual value of $5,700 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 946,000 copies. This year, 267,000 copies were made. a. Determine the depreciable cost. b. Determine the depreciation rate. per copy c. Determine the units-of-output depreciation for the year.
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