On October 1, 2021, the Allegheny Corporation purchased equipment for $123,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 220,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Units of production (units produced in 2021, 11,000; units produced in 2022 26,000). (Round “Depreciation per unit rate” answers to 2 decimal places.) Select formula for Units of Production Depreciation: _____________________________________________ Calculate 2021 depreciation expense: Depreciation per unit rate _______________ Units produced in 2021 ________________ Depreciation in 2021 ________________ Calculate 2022 depreciation expense: Depreciation per unit rate _______________ Units produced in 2022 _______________ Depreciation in 2022
On October 1, 2021, the Allegheny Corporation purchased equipment for $123,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 220,000 units during its life.
Required:
Calculate
- Units of production (units produced in 2021, 11,000; units produced in 2022 26,000). (Round “Depreciation per unit rate” answers to 2 decimal places.)
Select formula for Units of Production Depreciation:
_____________________________________________
Calculate 2021 depreciation expense:
Depreciation per unit rate _______________
Units produced in 2021 ________________
Depreciation in 2021 ________________
Calculate 2022 depreciation expense:
Depreciation per unit rate _______________
Units produced in 2022 _______________
Depreciation in 2022 _______________
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