ShadyZ Corporation Uses the Unit-Of-Production Method to Estimate Depreciation

question 34

Multiple Choice

ShadyZ Corporation uses the unit-of-production method to estimate depreciation.A new asset is purchased for $18,000 that will produce an estimated 100,000 units over its useful life.Estimated residual value is $2,000.What is the depreciation rate per unit?

• A)$1.60
• B)$1.80
• C)$0.16
• D)$0.18

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