Billu Limited purchased equipment on January 1,2015 for $275,000.It was estimated that the equipment would have a residual value of $25,000 at the end of its useful life.The asset's useful life was estimated at 5 years or 10,000 units of output.The company has a December 31 year end.
Additional Information

Assuming the company uses the units-of-production depreciation method,calculate the accumulated depreciation at the end of 2018.

Question

Billu Limited purchased equipment on January 1,2015 for $275,000.It was estimated that the equipment would have a residual value of $25,000 at the end of its useful life.The asset's useful life was estimated at 5 years or 10,000 units of output.The company has a December 31 year end.
Additional Information

Assuming the company uses the units-of-production depreciation method,calculate the accumulated depreciation at the end of 2018.

Quizplus · Accepted Answer

C)(275,000 - 25,000)= 250,000 / 10,000 = $25.00 per unit
(1,900 + 2,000 + 1,700 + 2,300)× $25.00 = $202,500

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