An item of equipment owned by Harper Industries cost $120,000 and had an estimated use of 60,000 hours. During the first 3 years, the equipment was used for 12,000, 10,000, and 9,000 hours. The equipment has an estimated life of 6 years and an estimated salvage value of $15,000. Required: Determine the depreciation for each of the 3 years using the units of production method.

An item of equipment owned by Harper Industries cost $120,000 and had an estimated use of 60,000 hours. During the first 3 years, the equipment was used for 12,000, 10,000, and 9,000 hours. The equipment has an estimated life of 6 years and an estimated salvage value of $15,000. Required: Determine the depreciation for each of the 3 years using the units of production method.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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