A company paid $519,000 to purchase equipment and $16,900 to have the equipment delivered to...
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Accounting
A company paid $519,000 to purchase equipment and $16,900 to have the equipment delivered to and installed in the company's production facilities. The equipment is expected to be used a total of 29,900 hours throughout its estimated useful life of seven years. The estimated residual value of the equipment is $6,900. The company began using the equipment on May 1, 2016. The company has an October 31, 2016 year-end. It used the equipment for a total of 13,100 hours between May 1 and October 31, 2016. Using the units-of- production method, what amount of depreciation expense would the company report in the income statement prepared for the year-ended October 31, 2016?
a.$231,769
b.$115,885
c.$225,769
d.$529,000
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