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A Textile Company bought equipment for $40,000. The residual value is $6,000.
The company assumes the equipment will have a useful life of 170,000 units. What
is depreciation expense per unit of production?

$2.00
$1.20
$0.75
$0.20

Respuesta :

anthougo

The depreciation expense per unit of production for the Textile Company is D. $0.20.

What is the unit-of-production depreciation method?

The unit-of-production depreciation method uses the useful life of an asset based on the units of production and the depreciable amount to estimate the depreciation expense per unit.

For each period, the depreciation expense per unit is multiplied by the units of production to determine the period's total depreciation expense.

Data and Calculations:

Cost of equipment = $40,000

Residual value = $6,000

Depreciable amount = $34,000 ($40,000 - $6,000)

Estimated useful life = 170,000 units

Depreciation expense per unit of production = $0.20 ($34,000/170,000)

Thus, the depreciation expense per unit of production for A Textile Company is D. $0.20.

Learn more about the unit-of-production depreciation method at https://brainly.com/question/15731283

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