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creativ13 [48]
3 years ago
10

5) You purchased a 3D printer for $60,000 that you expect to print 12,000 parts over its lifetime. You printed 2,000 parts in th

e first year. Assume no salvage value for the printer. What is your allowable depreciation for the first year using the Units of Production Method
Business
1 answer:
Iteru [2.4K]3 years ago
4 0

Answer:

Depreciation for the first year is $10,000

Explanation:

Unit production method is the depreciation method which is based on the output per year of the asset. The asset is depreciated by the ratio of the output for the year to the output expected over whole useful life.

Cost of printer = $60,000

Expected output = 12,000 prints

Prints in the first year = 2,000

Depreciation for the year = Total cost x output for the year / expected output over useful life

Depreciation for the first year = $60,000 x 2,000 / 12,000

Depreciation for the first year = $60,000 x 1/6

Depreciation for the first year = $10,000

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