2. If 16,000 units of product are produced in 2011 and 24,000 units are produced in 2012, what is thecarrying amount of the equipment at December 31, 2012 using the units-of-production depreciationmethod.

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Description: 2. If 16,000 units of product are produced in 2011 and 24,000 units are produced in 2012, what is thecarrying amount of the equipment at December 31, 2012 using the units-of-production depreciationmethod.

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2 If 16,000 units of product are produced in 2011 and 24,000 units are produced in 2012, wnat is the carrying amount of the equipment at December 31, 2012 using the units-of-production depreciation method

2 If 16,000 units of product are produced in 2011 and 24,000 units are produced in 2012, wnat is the carrying amount of the equipment at December 31, 2012 using the units-of-production depreciation method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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2. If 16,000 units of product are produced in 2011 and 24,000 units are produced in 2012, what is the
carrying amount of the equipment at December 31, 2012 using the units-of-production depreciation
method.

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