Assume that a piece of land is currently valued at $50,000. If this piece of land is expected to appreciate at an annual rate of
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Answer:
$2080
Explanation:
Given: Cost of generator= $11000.
Residual value= $1000.
Estimated life of generator= 5000 hours.
Actual activity performed during the period= 1040 hours.
Now, finding the depreciation expense for the first year using the units-of-activity method.
Formula;
⇒ Depreciation expense=
Opening parenthesis
⇒ Depreciation expense=
⇒ Depreciation expense=
Hence, the depreciation expense for the first year using the units-of-activity method of depreciation is $2080.