At the beginning of 2017, your company buys a $34,400 piece of equipment that it expects...

At the beginning of 2017, your company buys a $34,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 42,000 units in 2017, 53,000 units in 2018, 47,000 units in 2019, and 58,000 units in 2020.

Required:

Determine the depreciable cost.
Calculate the depreciation expense per year under the straight-line method.
Use the straight-line method to prepare a depreciation schedule.
Calculate the depreciation rate per unit under the units-of-production method.
Use the units-of-production method to prepare a depreciation schedule.

Expert Solution

ekkarill92 answered 5 months ago

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