Details of this Paper

What will be each year's depreciation charge if Pemberton uses the units-of production method?

Description

solution


Question

Pemberton Corp. purchased a machine costing $300,000 that had an estimate useful life of six years and residual value of $18,000. The machine is expected to produce 3,525,000 units during its useful life, as follow;YEAR UNITS;1 930,000;2 800,000;3 580,000;4 500,000;5 415,000;6 300,000;3,525,000;a. What will be each year's depreciation charge if Pemberton uses the units-of production method?;b. Will this give significantly different depreciation charges in each year than the sum-of-the-years' digits method?

 

Paper#30212 | Written in 18-Jul-2015

Price : $27
SiteLock