ShadyZ Corporation uses the unit-of-production method to estimate depreciation.A new asset is purchased for $18,000 that will produce an estimated 100,000 units over its useful life.Estimated residual value is $2,000.What is the depreciation rate per unit?
A)$1.60
B)$1.80
C)$0.16
D)$0.18

Question

Quizplus · Accepted Answer

($18,000 - $2000)* (1/100,000)= $0.16.

ShadyZ Corporation Uses the Unit-Of-Production Method to Estimate Depreciation