Mid-Town Auto Parts Company uses the direct method to prepare its statement of cash flows. Refer to the following information r
1 answer:
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Answer:
2080 dollars
Explanation:
Given that Cardinal Industries purchased a generator that cost $11,000
cost of generator = 11000
Estimated life = 5 years
Residual value =1000
Hours =5000
Depreciation per unit hour = (Cost - residual value)/total lifetime hours
=
For first year the generator was used for 1,040 hours.
Hence depreciation to be charged in I year
=
answer is 2080 dollars.