Explanation Units-of-production method: The depreciation method which assumes that the consumption of economic benefits of long-term asset is based on the production capacity or output is referred to as units-of-production method. Ascertain the first year depreciation expense under units-of-production method as follows: Depreciation Expense = Depreciation per unit × Usage = $ 319 per concerts (1) × 45 concerts = $14,355 Therefore, the first year depreciation expense under units-of-production method is $ 14,355

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Ascertain the first year depreciation expense under units-of-production method.

Solution Summary: The author explains the first year depreciation expense under units-of-production method, which assumes the consumption of economic benefits of long-term asset is based on the production capacity or output.

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