Techtronic Solutions purchased equipment for $150,000 on January 1, 2021. It is estimated that the equipment will have a useful life of 10 years, a salvage value of $12,000, production of 80,000 units, and working hours of 40,000 hours. In 2021, the company used the equipment for 8,000 hours and the equipment produced 10,000 units. Compute the depreciation under the working hour's method.

Techtronic Solutions purchased equipment for $150,000 on January 1, 2021. It is estimated that the equipment will have a useful life of 10 years, a salvage value of $12,000, production of 80,000 units, and working hours of 40,000 hours. In 2021, the company used the equipment for 8,000 hours and the equipment produced 10,000 units. Compute the depreciation under the working hour's method.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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