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 5 years. It is estimated that the machine will output an estimated 1,000,000 copies. This year, 315,000 copies were made. What is the units-of-output depreciation for the year?
A) $22,050
B) $18,900
C) $22,680
D) $19,845

Question

Quizplus · Accepted Answer

$63,000 (Initial cost - Estimated residual value = $72,000 - $9000)
$0.063 per copy (Depreciable cost / Total units of output = $63,000 / 1,000,000 copies)
315,000 copies × $0.063 = $19,845

Copy Equipment Was Acquired at the Beginning of the Year