NO.PZ2018062018000053
问题如下:
Company M purchased a $400,000 equipment with a 4-year useful life at the beginning of 2016, considering the salvage value is zero. In the first year of its useful life, the units of production accounted for 23% of the equipment’s lifetime production capacity. If company M wants its operating profit to be the highest in the first year of use, which depreciation method should it adopt?
选项:
A.double-declining balance.
B.straight line.
C.units of production.
解释:
C is correct. The lower the depreciation expense is, the higher the operating profit will be.
Depreciation expense:
Straight line = $400,000 /4 = ? $100,000
Double-declining balance = $400,000 × (2/4) = $200,000
Units of production = $400,000 × 0.23 = ? $92,000
So company M should adopt the units of production method.
请帮忙写一下公式和过程,公式在讲义上能看到,但是和题目里面的数据对应不上,谢谢