required information\nknowledge check 01\non january 1, 2021, truesdale, incorporated, purchased a piece of…

required information\nknowledge check 01\non january 1, 2021, truesdale, incorporated, purchased a piece of machinery for use in operations. the total acquisition cost was $33,000. the machine was expected to produce a total of 60,000 units during its life. the machine actually produced 16,000 units during 2021, 23,000 units during 2022, and 21,000 units during 2023. the machine has a salvage value of $3,000.\nusing the units - of - production method, the amount of depreciation that should be recorded during 2022, is approximately\n$8,000\n$10,000\n$8,800\n$11,500

required information\nknowledge check 01\non january 1, 2021, truesdale, incorporated, purchased a piece of machinery for use in operations. the total acquisition cost was $33,000. the machine was expected to produce a total of 60,000 units during its life. the machine actually produced 16,000 units during 2021, 23,000 units during 2022, and 21,000 units during 2023. the machine has a salvage value of $3,000.\nusing the units - of - production method, the amount of depreciation that should be recorded during 2022, is approximately\n$8,000\n$10,000\n$8,800\n$11,500

Answer

Explanation:

Step1: Calculate depreciable base

Depreciable base = Acquisition cost - Salvage value
$33,000 - $3,000 = $30,000$

Step2: Determine depreciation per unit

Depreciation per unit = Depreciable base / Total expected units
$\frac{30,000}{60,000} = 0.5$ dollars per unit

Step3: Compute 2022 depreciation

2022 depreciation = Depreciation per unit × Units produced in 2022
$0.5 × 23,000 = 11,500$

Answer:

$11,500$