Granny's Fried Chicken bought equipment on January 2, 2024, for $21,000. The equipment was expected to remain in service for four years and to operate for 3,600 hours.
At the end of the equipment's useful life, Granny's estimates that its residual value will be $3,000. The equipment operated for 360 hours the first year, 1,000 hours the
second year, 1,440 hours the third year, and 720 hours the fourth year
Read the requirements
Asset
Date
Cost
Depreciable
Cost
Useful
Life
Depreciation
Expense
Accumulated
Depreciation
Hook
Value
1-7-2024 $ 21,000
21,000
12-31-2024
18,000
4 years
$ 4,500 $ 4,500
16,500
12-31-2025
10,000
4 years
4,500
9,000
12,000
12-31-2026
10,000
4 years
4,500
13,500
7,500
12-31-2027
18,000
4 years
4,500
18,000
3,000
Before calculating the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the
depreciation expense per unit.
Cost
Residual value
Useful life in units
Depreciation per unit
