Question

Background information: On January 1, 2015, Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine was expected to produce a total of 60,000 units in during its life. The machine actually produced 16,000 units during 2015, 23,000 units during 2016, and 21,000 units during 2017. The machinery has a salvage value of $3,000. EventActivity Type Using the units-of-production method, the amount of depreciation that should be recorded during 2015 is approximately ____. select Using the units-of-production method, the book value of the machinery at December 31, 2016 is approximately _____.

Answer 1

The book value will be "13,500". The further explanation is given below.

Step-by-step explanation:

The given values are:

Total acquisition cost,

= $33,000

Expected,

= 60,000

Depreciation expense per unit will be:

=
`(33000-3000)/(60000)`

=
`0.50 \ per \ unit`

For 2015,

Depreciation expense will be:

=
`16000* 0.50`

=
`8000`

For 2016,

Depreciation expense will be:

=
`23000* 0.50`

=
`11500`

Now,

⇒
`Book \ value = Cost - Accumulated \ Depreciation`

⇒
`=33000 - (8000+11500)`

⇒
`=13500`