Question

A copy machine was purchased for $35,000. The machine is estimated to have a useful life of four years with a residual value of $3,000. It is estimated that the machine will make 2,000,000 copies. Using the units-of-activity method to depreciate the copy machine, what information is needed to calculate the first year's depreciation of 550,000 copies were made

Answer 1

Using the units-of-activity method to depreciate the copy machine, what information is needed to calculate the first year's depreciation of 550,000 copies were made. % use / assets cost

Step-by-step explanation:

Net Value Dep. year End Net value.

32000 8800 23200

% use= 550000÷2000000=0,275

Dep= %use x cost

0,275 x 32000 =8800