On January 4,2019,Margaret's Cafe acquired equipment for $147,500.The estimated life of the equipment is 4 years or 42,500 hours.The estimated residual value is $20,000.What is the depreciation for 2019,if Margaret's Cafe uses the asset 14,400 hours and uses the units-of-production method of depreciation?

Question

Quizplus · Accepted Answer

($147,500 - $20,000)÷ 42,500 = $3 per hour
$3 × 14,400 = $43,200

On January 4,2019,Margaret's Cafe Acquired Equipment for $147,500