The cost of a machine is 9400 RO with a residual value of 400 RO. The estimated units machine will produce is 10,000 units. Actual production in the first year is 6000 units. What is the depreciation for the first year by using units of production method? O a. 6400 RO 9000 RO

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 4RE: Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000...
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The cost of a machine is 9400 RO with a residual
value of 400 RO. The estimated units machine
will produce is 10,000 units. Actual production in
the first year is 6000 units. What is the
depreciation for the first year by using units of
production method?
O a. 6400 RO
O b. 9000 RO
O . 5400 RO
O d. 4000 RO
Transcribed Image Text:The cost of a machine is 9400 RO with a residual value of 400 RO. The estimated units machine will produce is 10,000 units. Actual production in the first year is 6000 units. What is the depreciation for the first year by using units of production method? O a. 6400 RO O b. 9000 RO O . 5400 RO O d. 4000 RO
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