Buggy Company purchased equipment on June 3, 2012, for $100,000. The residual value is zero and the estimated life is 10 years or 42,550 hours. Compute depreciation expense for the year ending December 31, 2012, if the company uses the units-of-production method of depreciation and uses the equipment for 8,600 hours.

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The Answer of Buggy Company purchased equipment on June 3, 2012, for $100,000. The residual value is zero and the estimated life is 10 years or 42,550 hours. Compute depreciation expense for the year ending December 31, 2012, if the company uses the units-of-production method of depreciation and uses the equipment for 8,600 hours.

Buggy Company Purchased Equipment on June 3, 2012, for $100,000