Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Jimenez Supply Company purchased equipment for $240,000.?
Residual value at the end of an estimated five-year service life is expected to be $20,000. The machine operated for 2,200 hours in the first year and 3,600 hours in the second year and the company expects the machine to operate for a total of 11,000 hours over its four year life. Calculate depreciation expense for the second year using the activity-based method.
2 Answers
- olliverLv 66 years ago
Units of production depreciation = (Cost – Salvage Value) / Lifetime in units
Units of production depreciation = (240000 - 20000) / 11000 = 20 per hour
Year 2
Units of production depreciation = 3600 x 20 = 72000
- Don GLv 76 years ago
Does it have a 4 or 5 yr service life? If 4 yrs, then 240,000 - 20,000 = 220,000 / 11,000 hrs = 20.00 per hr x 3,600 hrs = 72,000 depreciation in yr 2.
