Question

A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of 5 years or 15,000 hours. it is to be depreciated by the units-of-output method. what is the amount of depreciation for the second full year, during which the machine was used 5,000 hours

Name: a machine with a cost of 120000 has an estimated residual value of 15000 and an estimated life of 5 years or 15000 hours it is to be depreciated by the units of output method what is the amo 10246
Uploaded: 2022-07-14T18:15:55-08:00
Duration: 3 min 24 s
Channel: Haricharan Gupta
Description: a machine with a cost of 120000 has an estimated residual value of 15000 and an estimated life of 5 years or 15000 hours it is to be depreciated by the units of output method what is the amo 10246

          A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of 5 years or 15,000 hours. it is to be depreciated by the units-of-output method. what is the amount of depreciation for the second full year, during which the machine was used 5,000 hours

Added by Richard G.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Haricharan Gupta

07/14/2022

Step 1

Given: Cost of the machine = $120,000 Residual value = $15,000 Total units of output = 15,000 hours Depreciation per operating hour = (Cost - Residual Value) / Total units of output Depreciation per operating hour = ($120,000 - $15,000) / 15,000 Depreciation per Show more…

Show all steps

Thanks for your feedback!

A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of 5 years or 15,000 hours. it is to be depreciated by the units-of-output method. what is the amount of depreciation for the second full year, during which the machine was used 5,000 hours