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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 Exercises 25-30 as they relate to the units-of-production method of depreciation. Round to the nearest tenth of a cent when necessary.

Salvage Units of Depreciation
Asset Cost Value Useful life per Unit

Pump $15,000 $2,800 100,000 gallons $.122

To determine

To calculate: The depreciation per unit for pump using units-of-production method when the cost of pump is $15,000 and expected useful life of 100,000 gallons. The residual value of pump is $2,800.

Explanation

Given Information:

The cost of pump is $15,000 and expected useful life of 100,000 gallons. The residual value of pump is $2,800.

Formula used:

The depreciation per unit is:

Depreciation per unit=CostSalvage valueUnits of useful life

Calculation:

Consider the cost of pump is $15,000 and expected useful life of 100,000 gallons. The residual value of pump is $2,800

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