Determine the units-of-production depreciation schedule

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Reference no: EM132165561

Question - During the construction of a highway bypass, earthmoving equipment costing $40,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4-year project, the equipment will be sold for $20,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year, 25%; and in the final year, the remaining 5%. Determine the units-of-production depreciation schedule for the equipment.

Reference no: EM132165561

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