Answer:
The amount of depreciation expense that should be recorded for the second year is $28,600
Explanation:
The computation of the depreciation per units or bolts under the units-of-production method is shown below:
= (Original cost - residual value) ÷ (estimated production bolts)
= ($206,520 - $11,000) ÷ (752,000 bolts)
= ($195,520) ÷ (752,000 bolts)
= $0.26 per bolt
Now for the second year, it would be
= Production units in second year × depreciation per bolts
= 110,000 units × 0.26
= $28,600
Peyton is engaging in a sales strategy in which he would likely tell of the buyer that the land will increase twice as much in the following year if it has not been brought in which this strategy will be able to lure the buyer into thinking of whether he or she will buy the land or not.
Questin 1. is A so is question 2 and 3 it looks like