Fantasy Limited purchased equipment on January 1,2015 for $275,000.The asset's useful life was estimated at 5 years or 10,000 units of output,with no residual value.The company has a December 31 year end.
Additional Information

Assuming the company uses the units-of-production depreciation method,what is the depreciation expense for 2015?

Question

Fantasy Limited purchased equipment on January 1,2015 for $275,000.The asset's useful life was estimated at 5 years or 10,000 units of output,with no residual value.The company has a December 31 year end.
Additional Information

Assuming the company uses the units-of-production depreciation method,what is the depreciation expense for 2015?

Quizplus · Accepted Answer

D)275,000 / 10,000 = $27.50 per unit
27.50 × 2,100 = 57,750

Fantasy Limited Purchased Equipment on January 1,2015 for $275,000