On january 1 2011 lloyd company purchased equipment with a, Ask an Expert

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On January 1, 2011, Lloyd Company purchased equipment with a list price of $12,600 with a 2% cash discount. A total of $1,000 was paid for installation and testing. During the first year, Lloyd paid $900 for insurance on the equipment and another $250 for routine maintenance and repairs. Luke uses the units-of-production method of depreciation. Useful life is estimated at 360,000 units, and estimated salvage value is $2,200. During 2011, the equipment produced 60,000 units. What is the amount of depreciation for the year?

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Category:- Accounting Basics
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