Why the company uses the units-of-activity method


A factory machine was purchased for $60,000 on January 1, 2010. It was estimated that it would have a $12,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years.

If the actual number of machine hours ran in 2010 was 4,000 hours and the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2010 would be?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Why the company uses the units-of-activity method
Reference No:- TGS0687090

Expected delivery within 24 Hours