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TiliK225 [7]
3 years ago
5

On January 1, 2015, Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,00

0. The machine was expected to produce a total of 60,000 units in during its life. The machine actually produced 16,000 units during 2015, 23,000 units during 2016, and 21,000 units during 2017. The machinery has a salvage value of $3,000. Using the units-of-production method, the amount of depreciation that should be recorded during 2015 is approximately
Business
1 answer:
olga_2 [115]3 years ago
6 0

Answer:

$8,000

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 units)

= ($33,000 - $3,000) ÷ (60,000 units)

= ($30,000) ÷ (60,000 units)

= $0.5 per unit

Now for the 2015 year, it would be

= Production units in second year × depreciation per bolts

= 16,000 units × 0.5

= $8,000

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This will transferred with the legal property and they will hold the security loan and it will be made equitable and the title will remain with the borrower until they pay of the money

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No

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Marginal cost, average variable cost, and average total cost will increase. Average fixed cost will not change.

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