Hello I need help with the following questions Connect xC Ch

Hello, I need help with the following question(s):

Connect xC Chegg Study Order Confi M Inbox-jyarb1019@gmail X ? ? ??Secure l https://newconnect.mheducation.com/flow/connect.html Ch 8 Exercises Help Save & Exit Submit Saved Check my work 6 QS 8-4 Units-of-production depreciation LO P1 On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $65,800. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years t can sell the equipment for $2,000. During year 2017, the band performs 45 concerts pcinis Compute the year 2017 depreciation usng the units-of-production method. Select formula for the depreciation rate of Units of Production: Calculate 2017 depreciation expense eBook Hint Piint References Depreciation per concert Concerts in 2017 Depreciation in 2017 Mc Graw KPrex6 of 14 ACC201 Schedule Sum 18 z Word O Type here to search 2-36 PM 7/11/2018

Solution

Solution:

Computation of Depreciation (Using Unit of Production Method)

Under the Units of Production method of depreciation, depreciation is charged according to the actual usage of the asset. Higher depreciation is charged when there is higher activity and less is charged when there is low level of operation. Zero depreciation is charged when the asset is idle for the whole period.

Estimated Number of Concerts perform during life of machine = 200 Concerts

Equipment’s Depreciable Cost = Cost of Asset – Salvage Value = $65,800 - $2,000 = $63,800

Under the units of production method, the Equipment’s depreciable cost of $63,800 is divided by estimated production during the life of asset 200 Concerts, resulting in depreciation of $319 per concert.

2017 Depreciation Expense

Depreciation per concert

$319

Concerts in 2017

45

Depreciation in 2017 ($319*45)

$14,355

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

2017 Depreciation Expense
Depreciation per concert	$319
Concerts in 2017	45
Depreciation in 2017 ($319*45)	$14,355