On June 30, 2024, Prego Equipment purchased a precision laser - guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to be depreciated using the units - of -production method. During the six months of 2024, 24,000 units of product were produced. At the beginning of 2025, engineers estimated that the machine can realistically be used to produce only another 230,000 units. During 2025, 70,000 units were produced. The company would report depreciation in 2024 of: 1)$21,950 2)$18,000 3) $43,900 4)S36,000

On June 30, 2024, Prego Equipment purchased a precision laser - guided steel punch that has an expected capacity of 300,000 units and no residual value. The cost of the machine was $450,000 and is to be depreciated using the units - of -production method. During the six months of 2024, 24,000 units of product were produced. At the beginning of 2025, engineers estimated that the machine can realistically be used to produce only another 230,000 units. During 2025, 70,000 units were produced. The company would report depreciation in 2024 of: 1)$21,950 2)$18,000 3) $43,900 4)S36,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On June 30, 2021, Prego Equipment purchased a precision laser-guided steel punch that has an expected capacity of 313,000 units and no residual value. The cost of the machine was $469,500 and is to be depreciated using the units-of- production method. During the six months of 2021, 37,000 units of product were produced. At the beginning of 2022, engineers estimated that the machine can realistically be used to produce only another 258,750 units. During 2022, 83,000 units were produced. Prego would report depreciation in 2022 of: Multiple Choice • $110,067. . $132,800. $166,500. $124,500. . .
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