Question

A concrete and rock crusher for demolition work has been purchased for ​$50,000​, and it has an estimated SV of ​$10,000 at the end of its​ five-year life. Engineers have estimated that the following units of production​ (in m3 of crushed​ material) will be contracted over the next five years. Using the units of production depreciation​ method, what is the depreciation allowance in year two​, and what is the BV at the end of year two​?

Answer 1

Instructions are listed below.

Step-by-step explanation:

Giving the following information:

A concrete and rock crusher for demolition work has been purchased for ​$50,000​, and it has an estimated SV of ​$10,000 at the end of its​ five-year life.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Book value= Original cost - accumulated depreciation