Reference no: EM132463733
Instructions : Use the same word document and put your answers in the space provided.
You must show your calculations for every answer. Adjust the space in case you need more space.
In the production of beer, a final filtration is accomplished by the use of "Kieselguhr" or diatomaceous earth, which is composed of the fossil remains of minute aquatic algae, a few microns in diameter and composed of pure silica. A company has purchased a property for $840,000 that contains an estimated 60,000 tons.
Question 1: Compute the depreciation charges for the first three years, if a production (or extraction) of 3,000 tons, 5,000 tons, and 6,000 tons are planned for years 1, 2, and 3, respectively. Using the production units method , assuming no salvage value for the property, calculate depreciation.
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