Question

Help Save & Exit Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. What journal entry would be needed to record the machines' first year depreciation under the units-of-production method? s 18 Multiple Choice Debit Depletion Expense $25,800, credit Accumulated Depletion $25,800 Debit Depletion Expense $29,025credit Accumulated Depletion $29,025. Debit Depreciation Expense $29.025 credit Accumulated Depreciation $29,025 Debit Depreciation Expense $25.800, credit Accumulated Depreciation $25.800. Debit Amortization Expense $24,000, credit Accumulated Amortization 524.000

Answer 1

Ans. Calculation of depreciation under units of Production method 0 original "Lost Depreciable value = scrapvalue 135000 -15000 $ 120.000 • Annual Depreciation = Depreciable x unit's Produced during the year х value Estimated total unit's 120000 x 64500 300000 Dep. 2 $85800 - option / D) is correct. Depreciation Expense AIC D8 & 25800 To ·Accumulate Depreciation All $25800 is incorrect Because Annual per • other option $25800 CS Sainted with CamScanner