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Juli2301 [7.4K]
3 years ago
8

At December 31, 20X3, before recognizing any depreciation expense for 20X3, X Company has a machine with an original cost of $36

0,000 and accumulated depreciation of $90,000. The machine is used to manufacture a specific product and, at December 31, 20X3, has a remaining useful life of 7 years with no salvage value. The machine was used to produce 10,000 units in the current year, 20,000 units in previous years, and is expected to be used to produce an additional 50,000 units over its remaining life. If X Company uses the units of production method for calculating depreciation, depreciation expense in 20X3 will be (rounded):
Business
1 answer:
shutvik [7]3 years ago
7 0

Answer:

If X Company uses the units of production method for calculating depreciation, depreciation expense in 20X3 will be (rounded):

$45000

Explanation:

Cost                360000  

Accum. Depre 90000  

Usefull life         7  

   

Produce 1 20000  

Produce 2 10000  

Produce 3 50000  

                80000  

   

Deprec=cost/unit    

   

Depre=360000/80000    

Depre= 4,5  

   

Produce 2012  20000 4,5 90000

Produce 2013  10000 4,5 45000

Produce rest   50000 4,5 225000

             80000 4,5 360000

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