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Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

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BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

Complete the following as they relate to the units-of-production method of depreciation. Round answers to the nearest tenth of a cent

Salvage Units of Useful Depreciation
Asset Cost Value Life per Unit
10. Pump $8,900 $250 500,000 gallons

To determine

To calculate: The depreciation per unit for pump using units-of-production method when the cost of pump is $8,900.

Explanation

Given Information:

The cost of pump is $8,900 and expected useful life of 500,000 gallons. The salvage value of pump is $250.

Formula used:

The depreciation per unit is:

Depreciation per unit=CostSalvage valueUnits of useful life

Calculation:

Consider the cost of pump is $8,900 and expected useful life of 500,000 gallons. The salvage value of pump is $250

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