A copy machine was purchased for $28,000. It is estimated that the machine will have a useful life of 4 years and a residual value of $4,000. It is estimated that the machine will make 2,000,000 copies. Using the units-of-activity method to depreciate the copy machine, how much will be depreciated if during the first year 550,000 copies were made? a. $24,000 Ob. $7,700 Oc. $6,600 d. $6,000 A copy machine was purchased for $28,000. It is estimated that the machine will have a useful life of 4 years and a residual value of $4,000. It is estimatedthat the machine will make 2,000,000 copies. Using the units-of-activity method to depreciate the copy machine, how much will be depreciated if during thefirst year 550,000 copies were made?a. $24,000b. $7,700c. $6,600d. $6,000

Units of activity method is one of the depreciation method.It is used to record depreciation based…

Answered: A copy machine was purchased for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A copy machine was purchased for $28,000. It is estimated that the machine will have a useful life of 4 years and a residual value of $4,000. It is estimated that the machine will make 2,000,000 copies. Using the units-of-activity method to depreciate the copy machine, how much will be depreciated if during the first year 550,000 copies were made? a. $24,000 Ob. $7,700 Oc. $6,600 d. $6,000

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