required information use the following information for the quick studies below. (algo) the following…

required information use the following information for the quick studies below. (algo) the following information applies to the questions displayed below. on january 1, the matthews band pays $68,800 for sound equipment. the band estimates it will use this equipment for four years and perform 200 concerts. it estimates that after four years it can sell the equipment for $1,000. during the first year, the band performs 45 concerts. qs 10 - 5 (algo) units - of - production depreciation lo p1 compute the first - year depreciation using the units - of - production method. select formula for the depreciation rate of units of production: calculate the first year depreciation expense: depreciation per concert concerts in first year depreciation in first year

required information use the following information for the quick studies below. (algo) the following information applies to the questions displayed below. on january 1, the matthews band pays $68,800 for sound equipment. the band estimates it will use this equipment for four years and perform 200 concerts. it estimates that after four years it can sell the equipment for $1,000. during the first year, the band performs 45 concerts. qs 10 - 5 (algo) units - of - production depreciation lo p1 compute the first - year depreciation using the units - of - production method. select formula for the depreciation rate of units of production: calculate the first year depreciation expense: depreciation per concert concerts in first year depreciation in first year

Answer

Explanation:

Step1: Calculate depreciable cost

The cost of the sound - equipment is $68,800 and the salvage value is $1,000. The depreciable cost $C$ is the cost minus the salvage value. $C=68800 - 1000=67800$

Step2: Calculate depreciation rate per concert

The band estimates it will perform 200 concerts over the life of the equipment. Let the depreciation rate per concert be $r$. $r=\frac{C}{200}=\frac{67800}{200}=339$

Step3: Calculate first - year depreciation

The band performs 45 concerts in the first year. Let the first - year depreciation be $D$. $D = r\times45=339\times45 = 15255$

Answer:

$15255$