On January 1,2013,Zane Manufacturing Company purchased a machine for $40,000.The company expects to use the machine a total of 24,000 hours over the next 6 years.The estimated sales price of the machine at the end of 6 years is $4,000.The company used the machine 8,000 hours in 2013 and 12,000 in 2014.
- What is depreciation expense for 2014 if the company uses units-of-production depreciation?

Question

Quizplus · Accepted Answer

B) Calculations: [($40,000 - $4,000)/24,000] × 12,000 = $18,000

On January 1,2013,Zane Manufacturing Company Purchased a Machine for $40,000