On January 2, 2022, Sandhill Ltd. purchased equipment to be used in its manufacturing operations. The equipment has an estimated useful life of ten years, and an estimated residual value of $34000 It was also estimated that the equipment would be used a total of 71000 hours over its useful life. The depreciation expense for this equipment was $159040 for calendar 2023, using the units of production method. The machine was used for 8000 hours in 2023. The acquisition cost of the equipment was O $1713230. $1648490. $1143730. O $1445480.

On January 2, 2022, Sandhill Ltd. purchased equipment to be used in its manufacturing operations. The equipment has an estimated useful life of ten years, and an estimated residual value of $34000 It was also estimated that the equipment would be used a total of 71000 hours over its useful life. The depreciation expense for this equipment was $159040 for calendar 2023, using the units of production method. The machine was used for 8000 hours in 2023. The acquisition cost of the equipment was O $1713230. $1648490. $1143730. O $1445480.

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Description: On January 2, 2022, Sandhill Ltd. purchased equipment to be used in its manufacturing operations.The equipment has an estimated useful life of ten years, and an estimated residual value of $34000It was also estimated that the equipment would be used

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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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On January 2, 2022, Sandhill Ltd. purchased equipment to be used in its manufacturing operations.
The equipment has an estimated useful life of ten years, and an estimated residual value of $34000
It was also estimated that the equipment would be used a total of 71000 hours over its useful life.
The depreciation expense for this equipment was $159040 for calendar 2023, using the units of
production method. The machine was used for 8000 hours in 2023. The acquisition cost of the
equipment was
O $1713230.
$1648490.
$1143730.
O $1445480.

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