A company purchases a machine for $12,000. The estimated residual value is $4,000. The machine has a useful life of 5 years, and is expected to produce 20,000 units during its lifetime. Use the activity-based depreciation method to calculate the amount of depreciation in Year 1, assuming that the machine was used to produce 6,000 units.
1. A company purchases a machine for $12,000. The estimated residual value is $4,000. The machine has a useful life of 5 years, and is expected to produce 20,000 units during its lifetime. Use the activity-based
2. Sonic Corporation purchases a delivery truck for $24,000. The company expects the truck to be in service for 100,000 miles, and the residual value is estimated to be $4,000. What is the depreciation rate using activity-based depreciation?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
question 2 begins with Sonic Corp and the answer is 0.2 so can you let me know the step to calculate q2?
by Bartleby Expert
