In: Accounting
Mace Company acquired equipment that cost $60,000, which will be
depreciated on the assumption that the equipment will last six
years and have a $4,000 residual value. Component parts are not
significant and need not be recognized and depreciated separately.
Several possible methods of depreciation are under
consideration.
Required:
1. Prepare a schedule that shows annual depreciation expense for
the first two years, assuming the following (Round your
answer to nearest whole dollar.):
2. Repeat your calculations for requirement 1, assuming a useful
life of 10 years, and a declining-balance rate of 20% that reflects
the longer life, but the same number of units of production. The
residual value is unchanged.