At the Beginning of 2019,your Company Buys a $30,000 Piece

question 56

Essay

At the beginning of 2019,your company buys a $30,000 piece of equipment that it expects to use for 4 years.The company expects to produce a total of 200,000 units.The equipment has an estimated residual value of $2,000.
a.Find the depreciable cost.
b.Find the depreciation expense per year under the straight-line method.
c.Prepare an depreciation schedule under the straight-line method.
d.Find the depreciation rate per unit under the units-of-production method.
e.Compare the annual depreciation expense using both methods assuming constant annual production.
f.Prepare an depreciation schedule under the units-of-production method if 44,000 units are produced in year one,53,000 units in year two,51,000 units in year three,and 52,000 units in year four.

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Definitions:

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