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.

Question
Asked Nov 17, 2019
29 views

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.

check_circle

Expert Answer

star
star
star
star
star
1 Rating
Step 1

Calculate the amount of depreciable as...

help_outline

Image Transcriptionclose

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

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Journalizing Cash Payments Lakeview Industries uses a cash payments journal. Prepare a cash payments...

A: In the above entry, payment made for merchandising inventory is recorded. Here, the corporation acco...

question_answer

Q: [The following information applies to the questions displayed below.]   Stephanie is 12 years old an...

A: The rule of standard deduction for the year 2019 is as follows: $1,100 or$350 + Income earned;Whiche...

question_answer

Q: Sell or Process Further, Basic Analysis Carleigh, Inc., is a pork processor. Its plants, located in ...

A: Compute gross profit earned by original mix of products as shown below:

question_answer

Q: On 1 July 2017, Guinness Ltd acquired two assets within the same class of plant andequipment for cas...

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...

question_answer

Q: What accounts can appear on the Income Statement?

A: Income statement is a statement that helps in calculating the income or the profit and loss of a fir...

question_answer

Q: Parrish 1-8 Pg 17 Please list wether the follwoing are Proprietorships, Partnerships, or Corporation...

A: Proprietorship: It is one form of simple business that is owned and maintained by a single person. S...

question_answer

Q: Revenue and Expense Accounts Are revenue and expense accounts equal to equity in how cash is a part ...

A: Revenue: Revenues are earnings of business by sale of goods and services in business. It is earned f...

question_answer

Q: Gato Inc. had the following inventory situations to consider at January 31, its year-end.(a1)Identif...

A: a.) Goods held on consignment for Steele Corp. since December 12- Gato co. has held goods on consign...

question_answer

Q: Complete the journal entries for the instructions under the numbers

A: When a company records the compensation of its employees, such type of accounting is known as payrol...