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A production facility was purchased on 1/1/12 for $120,000 and has a residual value of $15,000. It is depreciated using the units of production method, and it is estimated that its useful life is 200,000 units. What will be the book value of the facility on 31/12/15 if the usage patterns were as follows? Year Units Used 2012 25,000 2013 40,000 2014 35,000 2015 30,000 a. $45,530 b. $60,200 c. $51,750 d. $55,000

A production facility was purchased on 1/1/12 for $120,000 and has a residual value of $15,000. It is depreciated using the units of production method, and it is estimated that its useful life is 200,000 units. What will be the book value of the facility on 31/12/15 if the usage patterns were as follows? Year Units Used 2012 25,000 2013 40,000 2014 35,000 2015 30,000 a. $45,530 b. $60,200 c. $51,750 d. $55,000

FINANCIAL ACCOUNTING
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 production facility was purchased on 1/1/12 for $120,000 and has a residual value of $15,000. It is depreciated using the units of production method, and it is estimated that its useful life is 200,000 units. What will be the book value of the facility on 31/12/15 if the usage patterns were as follows? Year Units Used 2012 25,000 2013 40,000 2014 35,000 2015 30,000 a. $45,530 b. $60,200 c. $51,750 d. $55,000
Transcribed Image Text:A production facility was purchased on 1/1/12 for $120,000 and has a residual value of $15,000. It is depreciated using the units of production method, and it is estimated that its useful life is 200,000 units. What will be the book value of the facility on 31/12/15 if the usage patterns were as follows? Year Units Used 2012 25,000 2013 40,000 2014 35,000 2015 30,000 a. $45,530 b. $60,200 c. $51,750 d. $55,000
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