Copy equipment was acquired at the beginning of the year at a cost of $72,000 that has an estimated residual value of $9,000 and an estimated useful life of five years. It is estimated that the machine will output an estimated 1,000,000 copies. This year, 315,000 copies were made. Determine the
(a) depreciable cost,
(b) depreciation rate, and
(c) units-of-activity depreciation for the year.

Question

Copy equipment was acquired at the beginning of the year at a cost of $72,000 that has an estimated residual value of $9,000 and an estimated useful life of five years. It is estimated that the machine will output an estimated 1,000,000 copies. This year, 315,000 copies were made. Determine the 
(a) depreciable cost, 
(b) depreciation rate, and 
(c) units-of-activity depreciation for the year.

Quizplus · Accepted Answer

The Answer of Copy equipment was acquired at the beginning of the year at a cost of $72,000 that has an estimated residual value of $9,000 and an estimated useful life of five years. It is estimated that the machine will output an estimated 1,000,000 copies. This year, 315,000 copies were made. Determine the 
(a) depreciable cost, 
(b) depreciation rate, and 
(c) units-of-activity depreciation for the year.

Copy Equipment Was Acquired at the Beginning of the Year