Vickers Company uses the units-of-activity method in computing depreciation.A new plant asset is purchased for $36,000 that will produce an estimated 110,000 units over its useful life.Estimated salvage value at the end of its useful life is $3,000.What is the depreciation cost per unit?
A) $3.00.
B) $3.27.
C) $0.30.
D) $0.33.
Correct Answer:
Verified
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