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On June 1, 2021, Duncan Inc. purchased equipment for $74,000. The equipment had an estimated life of ten years, an estimated residual value of $8,000, and was expected to be used to produce 150,000 units over its life. During 2021, the equipment was used to produce 11,000 units and during 2022 it was used to produce 19,000 units.
Assume the company employs the units of production method of depreciation.
Question 1: Calculate the amount of accumulated depreciation on the equipment shown in the company's December 31, 2022 balance sheet.
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