Answer:
In 2020: $ 8,211 and in 2021: $ $11,067
Explanation:
In the units-of-production method, the cost of depreciation is dependent of the asset usage. Depreciation is spread across the units produced.
for waterway corporation:
Cost price = $59,500
salvage value $2,380
useful life 190, 000 miles
Depreciable value: Cost price- salvage value
=59,500-2380
=57,120
Depreciation per unit= Depricable cost / by expected mileage
= $57,120/190,000
=$0.30 per unit
Depreciation in 2020: usages x depreciation rate
=27,370 x 0.30
=$8,211
Depreciation in 2021: 36,890 x0.30
=In the units-of-production method, the cost of depreciation is dependant of the asset usage. Depreciation is spread across the units produced.
for waterway corporation:
Cost price = $59,500
salvage value $2,380
useful life 190, 000 miles
Depreciable value: Cost price- salvage value
=59,500-2380
=57,120
Depreciation per unit= depricable cost / by expected mileage
= $57,120/190,000
=$0.30 per unit
Depreciation in 2020: usages x depreciation rate
=27,370 x 0.30
=$8,211
Depreciation in 2021: 36,890 x0.30
=$11,067
