During the construction of a highway by-pass earthmoving

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Reference no: EM13622294

During the construction of a highway by-pass, earthmoving equipment costing $40,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4 year project, the equipment will be sold for 20,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year 30%; in the third year, 25%; and in the final year, the remaining 5%. Determine the units-of-production depreciation schedule for the equipment.

Reference no: EM13622294

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