Multiple Choice
Mott Company uses the units-of-activity method in computing depreciation.A new plant asset is purchased for $24,000 that will produce an estimated 100,000 units over its useful life.Estimated residual value at the end of its useful life is $2,000.What is the depreciation cost per unit?
A) $2.20
B) $2.40
C) $.22
D) $.24
Correct Answer:
Verified
Correct Answer:
Verified
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