On January 1, the Matthews Band pays $66,400 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During the first year, the band performs 45 concerts.

On January 1, the Matthews Band pays $66,400 for sound equipment. The band estimates it will use this equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During the first year, the band performs 45 concerts.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 15PB: Urquhart Global purchases a building to house its administrative offices for $500,000. The best...

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11 )

On January 1, the Matthews Band pays $66,400 for sound equipment. The band estimates it will use this
equipment for four years and perform 200 concerts. It estimates that after four years it can sell the equipment
for $1,000. During the first year, the band performs 45 concerts.
Compute the first-year depreciation using the units-of-production method.

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