Solve the problem. Round to the nearest dollar.
-A construction company purchased a piece of equipment for $1,610. The expected life is 9,000
Hours, after which it will have a salvage value of $290. Find the amount of depreciation for the first
Year if the piece of equipment was used for 1,700 hours. Use the units-of-production method of
Depreciation.

Question

Quizplus · Accepted Answer

The units-of-production method calculates depreciation based on usage. The depreciation per hour is ($1,610 - $290) / 9,000 = $0.147. For 1,700 hours, the depreciation is 1,700 * $0.147 = $249.90, which rounds to $255.

Solve the Problem. Round to the Nearest Dollar