On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $21,900. The drill press is expected to last 10 years and has a residual value of $5.100. During its 10- year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 20,500 and 75,000 units, respectively, were produced. Required: Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the units-of-production method is used. (Round depreciation per unit to 2 decimal places.) 2018 2019 Depreciation Book Values

On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $21,900. The drill press is expected to last 10 years and has a residual value of $5.100. During its 10- year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 20,500 and 75,000 units, respectively, were produced. Required: Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the units-of-production method is used. (Round depreciation per unit to 2 decimal places.) 2018 2019 Depreciation Book Values

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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