Answer:
Accumulated Depreciation expense for 2022 = $31,250
Explanation:
We know,
Depreciation expense under Unit-of-activity method = [(Cost - Salvage value) ÷ Total production during the useful life] x Usage during a period.
Given,
Purchase price = $500,000
Salvage value = $50,000
Total production during the useful life = 360,000 units
Total production during 2022 = 25,000 units
Therefore, depreciation expense for 2022 = [($500,000 - $50,000) ÷ 360,000 units] × 25,000 units
Depreciation expense = ($450,000 ÷ 360,000 units) × 25,000 units
Depreciation expense = $1.25 × 25,000 units
Accumulated Depreciation expense = $31,250
