Katie's restaurant purchased a new grill at a cost of $6,000. The expected life of the grill is 5000 hours of production, at which time it will have a salvage value of $600. Using the units of production method, prepare a depreciation schedule given the following production year 1: 1000 hours year 2: 1250 hours, year 3: 1000 hours; year 4: 1750 hours Complete the schedule. Amount of Year Depreciation 0 Accumulated Depreciation 1 2 3. $1000 $1080 $1250 $1350 $1000 1080 $1750 $1890 (Round to the nearest dollar as needed) Book Value $6,000 $4920 $3570 $2490 $600

Katie's restaurant purchased a new grill at a cost of $6,000. The expected life of the grill is 5000 hours of production, at which time it will have a salvage value of $600. Using the units of production method, prepare a depreciation schedule given the following production year 1: 1000 hours year 2: 1250 hours, year 3: 1000 hours; year 4: 1750 hours Complete the schedule. Amount of Year Depreciation 0 Accumulated Depreciation 1 2 3. $1000 $1080 $1250 $1350 $1000 1080 $1750 $1890 (Round to the nearest dollar as needed) Book Value $6,000 $4920 $3570 $2490 $600

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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