Question

A copy machine was purchased for $35,000. The machine is estimated to have a useful life of four years with a residual value of $3,000. It is estimated that the machine will make 2,000,000 copies. Using the units-of-activity method to depreciate the copy machine, what information is needed to calculate the first year's depreciation if 550,000 copies were made? a.$35,000 cost, useful life of four years, 2,000,000 copies, and $3,000 residual value b.$35,000 cost, useful life of four years, and $3,000 residual value c.$35,000 cost, 2,000,000 copies, $3,000 residual value, and 550,000 copies made d.$35,000 cost, 2,000,000 copies, and $3,000 residual value

Answer 1

Answer:

c.$35,000 cost, 2,000,000 copies, $3,000 residual value, and 550,000 copies made

Explanation:

For determining the information, we need to do the following calculations Depreciation rate per copies which is shown below:

= (Purchase cost - residual value) ÷ (estimated copies)

Now for the first year, the depreciation would be  

= Copies made in first year × depreciation rate per copies

These all the information is required through which the exact amount can come.