on January 1. 2020, at a cost of 120000S. The company estimated that the machine will have a residual value of 12000$. The machine is expected to be used for 12000 working hours during its 4 year life, the depreciation expense under unit of activity method for 2020 assuming machine usage was 1700 hours a. 20400$ O b. 17000Ś O c. 8500$ 15300S

on January 1. 2020, at a cost of 120000S. The company estimated that the machine will have a residual value of 12000$. The machine is expected to be used for 12000 working hours during its 4 year life, the depreciation expense under unit of activity method for 2020 assuming machine usage was 1700 hours a. 20400$ O b. 17000Ś O c. 8500$ 15300S

Name: Winston Printing purchased a new machine on January 1. 2020, at a cos
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Description: Winston Printing purchased a new machine on January 1. 2020, at a cost of 120000$. The companyestimated that the machine will have a residual value of 12000$. The machine is expected to be used for12000 working hours during its 4 year life, the depr

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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

Winston Printing purchased a new machine on January 1. 2020, at a cost of 120000$. The company
estimated that the machine will have a residual value of 12000$. The machine is expected to be used for
12000 working hours during its 4 year life, the depreciation expense under unit of activity method for 2020,
assuming machine usage was 1700 hours
O a.
20400$
O b. 17000S
O c.
8500$
O d. 1530OS

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