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millerbe1228
millerbe1228
10.12.2020 • 
Mathematics

A company decides to buy a new machine costing $450,000 that estimates 6-years life. The machine can produce 560,000 units of product during its life; specifically, 80,000 for year 1; 100,000 for year 2; year 3 is forecasted booming in consuming these products, hence increase the production that can reach to 400,000 units but the manager think that it is better to estimate an appropriate number of 250,000;year 4 is 70,000 and the remainder will be produced in year 5. Salvage value is estimated fall into the range of 20,000 and 30,000. Calculate depreciation for each year following the Units of Production method

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