Question

On january 2, 2017, the matthews band acquires sound equipment for concert performances at a cost of $65,800. the band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. it estimates that after four years it can sell the equipment for $2,000. during year 2017, the band performs 45 concerts.

Answer 1

Answer:

start working on 2019 not 2017 ok

Explanation:

Answer 2

Answer:

This question is incomplete. The completed question is as follows:

On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $65,800. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $2,000. During year 2017, the band performs 45 concerts.

Compute the year 2017 depreciation using the units-of-production method.

The answer is: $14, 355

Explanation:

Depreciation is the loss in an asset's value over its useful life. The units of production method of depreciation makes an assumption that the asset's useful life is related to the usage of the asset rather than the passing of time. The higher the volume of usage the higher the depreciation. Under the units of production method of depreciation, depreciation is calculated as follows:

Depreciation expense = ((Original cost - Salvage value)/ Estimated production capability) * Units consumed per year

Given the above formula, depreciation for the sound equipment purchased by the Matthews band for 2017 is:

(($65, 800 - $2000 )/ 200 concerts) * 45 concerts

=$63, 800/200 concerts * 45 concerts

=$319/concert * 45 concerts

=$ 14, 355