Units - dividing the asset's depreciable cost by the number...

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Units-of-activity depreciation . The useful life of some assets, particularly vehicles and equipment,  is frequently determined by usage. For example, a toy manufacturer may expect a certain machine to  produce one million dolls, or an airline may expect an airplane to provide ten thousand hours of flight  time.  Units-of-activity depreciation , which is sometimes called  units-of-production depreciation allocates the depreciable cost of an asset based on its usage. A per-unit cost of usage is found by 
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Unformatted text preview: dividing the asset's depreciable cost by the number of units the asset is expected to produce or by total usage as measured in hours or miles. The per-unit cost times the actual number of units in one year equals the amount of depreciation expense recorded for the asset that year. Calculating Units-of-Activity Depletion...
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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