A business maintains subsidiary accounts for each of its customers. on may 15, the business sells services on account: $2,500 to
1 answer:
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Answer:
$48,175
Explanation:
Given:
Cost of the weaving machine = $332,970
Useful life = 8 year or 767,000 bolts production
Residual value = $18,500
Number of bolts produced in the first year = 113,500
Number of bolts produced in the second year = 117,500
Now,
Using the units-of-production method of depreciation
Rate of depreciation =
=
= 0.41
Therefore,
Depreciation for the second year
= Rate of depreciation × Number of bolts produced in the second year
= 0.41 × 117,500
= $48,175