Forwind Ltd has recently acquired a machine that cost $29,000.The machine normally remains productive for 6 years.It is expected to continue in the production process at Forwind for 8 years due to the excellent maintenance and operating policies in place at Forwind.The machine has the capacity to produce 20,000 units over a 6 year life and 27,000 units over an 8 year life.Its salvage value after 6 years is expected to be $2,500 and after 8 years $1,000.What depreciation would be charged in the first year of the machine's operation when 4,000 units were produced (rounded to the nearest dollar)?

Question

Quizplus · Accepted Answer

The Answer of Forwind Ltd has recently acquired a machine that cost $29,000.The machine normally remains productive for 6 years.It is expected to continue in the production process at Forwind for 8 years due to the excellent maintenance and operating policies in place at Forwind.The machine has the capacity to produce 20,000 units over a 6 year life and 27,000 units over an 8 year life.Its salvage value after 6 years is expected to be $2,500 and after 8 years $1,000.What depreciation would be charged in the first year of the machine's operation when 4,000 units were produced (rounded to the nearest dollar)?

Forwind Ltd Has Recently Acquired a Machine That Cost $29,000