The pertinent information about a piece of construction equipment follows:cost $180,000Estimated Useful Life 200,000 MilesResidual (salvage) value $20,000Placed in service 1/2/2015Year 1 output = 37,000 milesYear 2 output= 51000 milesCompute the first two years depreciation using the units of output method.

Asked Nov 17, 2019

The pertinent information about a piece of construction equipment follows:

cost $180,000

Estimated Useful Life 200,000 Miles

Residual (salvage) value $20,000

Placed in service 1/2/2015

Year 1 output = 37,000 miles

Year 2 output= 51000 miles

Compute the first two years depreciation using the units of output method.


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Calculate the amount of depreciable as...


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Units of output method: $180,000-$20,000 $160,000 $160,000/$200,000 Depreciable asset Depreciation per mile $0.80


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