On January 5, 20X1, Sampson Company purchased equipment for $325,000 that had an estimated useful life of five years or 150,000 units of product. The estimated salvage value was $25,000. Actual production data for the first three years were 20X1—26,000 units; 20X2—37,000 units; and 20X3—32,000 units.

INSTRUCTIONS
Compute each year’s depreciation and the end-of-year accumulated depreciation for the first three years under (1) the straight-line method and (2) the units-of-output method.

Analyze: Would the total depreciation taken over the five-year life depend on which of the two methods is used? Why?