Answer:
a) $ 63,000.
b) $ 0.063 per copy produced.
c) $19,845.
Explanation:
<u>A : Determining the depreciable Cost.</u>
<u>T</u>he depreciable Cost = Acquisition cost - Salvage/Residual Value
<u>T</u>he depreciable Cost = $72,000 - $9,000
<u>T</u>he depreciable Cost = $ 63,000.
<u>B: Determining the depreciation rate.</u>
The depreciation rate = Depreciable cost/Total no. of units produced during useful life
The depreciation rate = $ 63,000/1,000,000
The depreciation rate = $ 0.063 per copy produced.
<u>B: Determining the units-of-output depreciation for the year.</u>
The units-of-output depreciation for the year = depreciation rate × the number of units produced for the year.
The units-of-output depreciation for the year = 0.063 × 315,000
The units-of-output depreciation for the year = $19,845.