Given the data below for production equipment, Initial Cost, P = $50,000 Salvage Value at the end of 5 years, S = $10,000. Depreciable Life. N = 5 Years Year Projected Production units Actual Production units 1 4,500 5,0002 5,000 4,000 3 3,500 3,0004 5,500 5,000 5 6,500 Not knownTotal 25,0001. Determine the depreciation in year 4 using the UOP method. A. $5, 600.B. $8,000.C. $4,000.D. $3, 200. 2. If the equipment is sold at the end of year 4 for $30,000, what is the depreciation recapture on this equipment?A. $8, 400.B. $5, 600.C. $7, 200.D. $4,000.

1. B. $8,000

2. C. $7,200

Explanation:

Units or production (UOP) method of depreciation bases the depreciation expense of a machine or equipment on how much it is actually used during the period.

depreciable value = $50,000 - $10,000 = $40,000

depreciation rate per unit = $40,000 / 25,000 = $1.60

Year          Projected Production units         Actual Production units

1                              4,500                                    5,000

2                             5,000                                    4,000

3                             3,500                                    3,000

4                             5,500                                    5,000

5                             6,500                                    Not known

Total                      25,000

depreciation expense year 4 = $1.60 x 5,000 = $8,000

accumulated depreciation year 4 = $1.60 x 17,000 = $27,200

book value = $50,000 - $27,200 = $22,800

if sold at $30,000, gain resulting from sale = $30,000 - $22,800 = $7,200

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number