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

question 71

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 residual 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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