Wings Manufacturing Company purchased a new machine on July 1, 2016. It was expected to...
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Accounting
Wings Manufacturing Company purchased a new machine on July 1, 2016. It was expected to produce 200,000 units of product over its estimated useful life of eight years. Total cost of the machine was $600,000, and salvage value was estimated to be $60,000. Actual units produced by the machine in 2016 and 2017 are shown below:
2016
16,000 units
2017
30,000 units
Wings reports on a calendar-year basis and uses the units-of-production method of depreciation. The amount of depreciation expense for this machine in 2017 would be?
2. On January 1, 2017, Brown Company purchased a mine for $100,000. On this same date, it was estimated that the mine contained 1,000 tons of ore. During 2017, 300 tons of ore were extracted from the mine and sold. The amount of depletion expense for 2017 would be?
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