Year Utilization (hr/yr) Year Utilization (hr/yr) 1 6000 800 2 4000 800 3 4000 7 2200 816 4 1600 8 2200 At the end of the job, it is estimated that the equipment can be sold at auction for $60,000. (a) Compute the straight-line depreciation schedule. (b) Compute the unit-of-production depreciation schedule.
Year Utilization (hr/yr) Year Utilization (hr/yr) 1 6000 800 2 4000 800 3 4000 7 2200 816 4 1600 8 2200 At the end of the job, it is estimated that the equipment can be sold at auction for $60,000. (a) Compute the straight-line depreciation schedule. (b) Compute the unit-of-production depreciation schedule.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A heavy construction firm has been awarded a contract to build a large concrete dam. It is expected that a total of 8 years will be required to complete the work. The firm will buy $600,000 worth of special equipment for the job. During the preparation of the
Transcribed Image Text:Year Utilization (hr/yr) Year Utilization (hr/yr)
1
6000
800
2
4000
800
3
4000
7
2200
816
4
1600
8 2200
At the end of the job, it is estimated that the equipment can be sold
at auction for $60,000.
(a) Compute the straight-line depreciation schedule.
(b) Compute the unit-of-production depreciation schedule.
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