8. Long Lived Assets
Depreciation for Partial Years
Multiple Choice
Multiple ChoiceDAB Company purchased a machine on November 1, Year 1 for $12,000. DAB estimated that the machine could produce 60,000 units over its useful life and would be worth $2,000 as scrap. During Year 1, DAB produced 3,000 units. During Year 2, DAB produced 12,000 units. During Year 3, DAB produced 9,000 units. If DAB uses the units-ofproduction method for depreciation, what would be the net book value of the machine at the end of Year 2?
A
$2,500
B
$4,000
C
$7,500
D
$8,000
E
$9,500
103
views
1
rank
Related Videos
Related Practice