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A piece of manufacturing equipment was purchased at the beginning of 2021 for an original cost of
$50,000. Over it's useful life, the equipment is expected to produce 40,000 widgets as follows:
2021: 4,000 units
2022: 10,000 units
2023: 12,000 units
2024: 8,000 units
2025: 6,000 units
The asset can be salvaged for 10% of its original cost at the end of 2025. The usage of the asset
varies over time and is dependent on the output. What is depreciation expense for 2025?
$6.750
$4,500
a
$7,500
$5,000
What is depreciation expense for 2025?
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1
Answer:
6750
Explanation:
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