Answer:
The depreciation rate is option C "0.29 per unit".
Explanation:
The given values are:
Cost of assets,
= $640,000
Salvage value,
= $60,000
Estimated units to be produced,
= 2,000,000 unit
Now,
The depreciation rate will be:
= [tex]\frac{Cost \ of \ assets-Salvage \ value}{Total \ estimated \ units \ to \ be \ produced}[/tex]
On substituting the values, we get
= [tex]\frac{640,000-60,000}{2,000,000}[/tex]
= [tex]\frac{580,000}{2,000,000}[/tex]
= [tex]0.29 \ per \ unit[/tex]
