The Widget Tool and Die Company buys a $400,000 stamping machine that has an estimated residual value of $20,000.The company expects the machine to produce two million units.It makes 400,000 units during the current period.If the units-of-production method is used,the depreciation rate is:
A)$0.95 per unit.
B)$0.19 per unit.
C)$0.05 per unit.
D)$1.00 per unit.

Question

Quizplus · Accepted Answer

($400,000 - $20,000)* (1/2,000,000)= $0.19.

The Widget Tool and Die Company Buys a $400,000 Stamping