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Question
Conejo Company, which uses a calendar year, purchased a piece of equipment for $50,000 on January 3, 2010. It estimates the equipment will have a useful life of 8 years and $4,000 residual value.
The equipment is used to produce 200,000 units during its useful life. The actual numbers of units produced were 20,000 during 2010, 33,000 during 2011, 18,000 during 2012, and 28,000 during 2013. Using the straight-line method, what is the book value at December 31, 2012?
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