Ask Question
5 March, 03:19

Sophia Company purchased equipment costing $120,000. The equipment has a residual value of $20,000 and an estimated useful life of 50,000 units. Using the units-of-activity method, calculate the depreciation for year 1 and year 2, assuming that the company produced 10,000 units in year 1 and 23,000 units in year 2.

+5
Answers (1)
  1. 5 March, 03:48
    0
    Year 1 : $20000

    Year 2 : $460000

    Explanation:

    Year 1 calculation:

    120000-20000/50000*10000 = $20000

    Year 2 calculation:

    120000-20000/50000*23000=$46000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Sophia Company purchased equipment costing $120,000. The equipment has a residual value of $20,000 and an estimated useful life of 50,000 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers