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Three years ago, you purchased woodworking equipment for your hobby activities and side-line business in cabinetry. The cost was $70,000, no salvage was expected, and the estimated capacity was 10,000 operating hours. Determine the annual depreciation and book value using the unit-of-production method if the usage has been 2,700, 2,200, and 4,200 hours per year. The depreciation in year 1 is $ The book value in year 1 is $ The depreciation in year 2 is $ The book value in year 2 is $ The depreciation in year 3 is $ The book value in year 3 is $

Three years ago, you purchased woodworking equipment for your hobby activities and side-line business in cabinetry. The cost was $70,000, no salvage was expected, and the estimated capacity was 10,000 operating hours. Determine the annual depreciation and book value using the unit-of-production method if the usage has been 2,700, 2,200, and 4,200 hours per year. The depreciation in year 1 is $ The book value in year 1 is $ The depreciation in year 2 is $ The book value in year 2 is $ The depreciation in year 3 is $ The book value in year 3 is $

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Three years ago, you purchased woodworking equipment for your hobby activities and side-line business in cabinetry. The cost was $70,000, no salvage was expected, and the estimated capacity was 10,000 operating hours. Determine the annual depreciation and book value using the unit-of-production method if the usage has been 2,700, 2,200, and 4,200 hours per year. The depreciation in year 1 is $ The book value in year 1 is $ The depreciation in year 2 is $ The book value in year 2 is $ The depreciation in year 3 is $ The book value in year 3 is $
Transcribed Image Text:Three years ago, you purchased woodworking equipment for your hobby activities and side-line business in cabinetry. The cost was $70,000, no salvage was expected, and the estimated capacity was 10,000 operating hours. Determine the annual depreciation and book value using the unit-of-production method if the usage has been 2,700, 2,200, and 4,200 hours per year. The depreciation in year 1 is $ The book value in year 1 is $ The depreciation in year 2 is $ The book value in year 2 is $ The depreciation in year 3 is $ The book value in year 3 is $
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