Mott Company Uses the Units-Of-Activity Method in Computing Depreciation

question 62

Multiple Choice

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $24,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $2,000. What is the depreciation cost per unit?

• A) $2.20
• B) $2.40
• C) $.22
• D) $.24

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Having a favorable and confident appreciation of one's own worth or abilities.

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