Question

On January 1, 2011, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $81,000. The equipment is expected to have a useful life of four years or produce a total of 121,000 units. At the end of its life, the equipment is expected to have a residual value of $4,600. The equipment is expected to produce 22,990 units in 2011; 32,670 units in 2012; and 35,090 units in 2013; and 30,250 units in 2014. Courier Inc.'s fiscal year ends on December 31.

In the table below, fill in the missing depreciation expense and accumulated depreciation amounts using the straight-line, double-declining-balance, and units-of-production methods. Do not round your intermediate calculation. When required, round your answers to the nearest dollar.

Cost $81,000	Depreciation Expense			Accumulated Depreciation
Year	Straight-line Method	Double- Declining- Balance Method	Unit-of- Production Method	Straight-line Method	Double- Declining- Balance Method	Unit-of- Production Method
2011	$	$40,500	$14,516	$19,100	$40,500	$14,516
2012	$19,100	$	$20,628	$	$60,750	$35,144
2013	$19,100	$10,125	$	$57,300	$	$57,300
2014	$19,100	$5,525	$19,100	$76,400	$76,400	$

Answer 1

Cost	Depreciation Expense			Accumulated Depreciation
$81,000
Year		Double-	Unit-of-		Double-	Unit-of-
	Straight-line	Declining-	Production	Straight-line	Declining-	Production
	Method	Balance Method	Method	Method	Balance Method	Method
2011	$19,100	$40,500	$14,516	$19,100	$40,500	$14,516
2012	$19,100	$20,250	$20,628	$38,200	$60,750	$35,144
2013	$19,100	$10,125	$22,156	$57,300	$70,875	$57,300
2014	$19,100	$5,525	$19,100	$76,400	$76,400	$76,400

--Working

Cost	Depreciation Expense			Accumulated Depreciation
$81,000
Year		Double-	Unit-of-		Double-	Unit-of-
	Straight-line	Declining-	Production	Straight-line	Declining-	Production
	Method	Balance Method	Method	Method	Balance Method	Method
2011	19100	40500	14516	19100	40500	14516
2012	19100	=40500*40500/81000	20628	=19100+19100	60750	35144
2013	19100	10125	=57300-35144	57300	=60750+10125	57300
2014	19100	5525	19100	76400	76400	=57300+19100