Conejo Company, which uses a calendar year, purchased a piece of equipment for $50,000 on January 3, 2010. It estimates the equipment will have a useful life of 8 years and a $4,000 residual value. The equipment is used to produce 200,000 units during its useful life. The actual numbers of units produced were 20,000 during 2010, 33,000 during 2011, 18,000 during 2012, and 28,000 during 2013. Using the straight-line method, what is the book value at December 31, 2012?
Conejo Company, which uses a calendar year, purchased a piece of equipment for $50,000 on January 3, 2010. It estimates the equipment will have a useful life of 8 years and a $4,000 residual value. The equipment is used to produce 200,000 units during its useful life. The actual numbers of units produced were 20,000 during 2010, 33,000 during 2011, 18,000 during 2012, and 28,000 during 2013. Using the straight-line method, what is the book value at December 31, 2012?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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Transcribed Image Text:Conejo Company, which uses a calendar year,
purchased a piece of equipment for $50,000 on
January 3, 2010. It estimates the equipment will
have a useful life of 8 years and a $4,000 residual
value. The equipment is used to produce 200,000
units during its useful life. The actual numbers of
units produced were 20,000 during 2010, 33,000
during 2011, 18,000 during 2012, and 28,000
during 2013. Using the straight-line method, what
is the book value at December 31, 2012?
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