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finlep [7]
3 years ago
15

Oriole Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $52000 that will

produce an estimated 80000 units over its useful life. Estimated salvage value at the end of its useful life is $3200. What is the depreciation cost per unit?
Business
1 answer:
AnnZ [28]3 years ago
4 0

Answer:

$ 0.61 per unit

Explanation:

The unit-of-activity method is one of the asset depreciation methods. Under this method, the depreciable cost of the asset is spread over the units produced. The formula is a more accurate measure of wear and tear.

In this case:

Depreciable cost=(purchase price -salvage value)

   =$52000.00 -$3200.00

   =$48,800.00

Depreciation  per unit=  Depricable cost / expected production

      =$48,800/80000

    =$ 0.61per unit

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4 years ago
Concord Corporation reported net income of $177,200 for 2017. Concord Corporation also reported depreciation expense of $35,230
klio [65]

Answer

Net income 177,200

+35230 depreciation

+4,920 loss on disposal

217,350 adjusted net income (a)

↑↓

↑AR -14,160

↑Prepaid -4,190

↑AP 17,220

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<u />

<u>Cash Flow generated from operating activities 216,220</u>

<u />

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(a) we must remove the non-monetary account from the income statement

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(b)

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