On January 1, 2020, Superior Manufacturing Company purchased a machine for $50,000,000. Superior's management expects to use the machine for 35,000 hours over the next five years. The estimated residual value of the machine at the end of the fifth year is $60,000. The machine was used for 5,000 hours in 2020 and 6,200 hours in 2021. What is the depreciation expense for 2020 if the company uses the units of the production method of depreciation?

On January 1, 2020, Superior Manufacturing Company purchased a machine for $50,000,000. Superior's management expects to use the machine for 35,000 hours over the next five years. The estimated residual value of the machine at the end of the fifth year is $60,000. The machine was used for 5,000 hours in 2020 and 6,200 hours in 2021. What is the depreciation expense for 2020 if the company uses the units of the production method of depreciation?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 13P

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