12. UNITS OF PRODUCTION DEPRECIATION CALCULATIONS On January 1, 2020, BCD Company purchased equipment for making snow globes for $400,000 and expected to keep it for 3 years. The estimated residual value of the equipment at the end of the 3rd year is $50,000. BCD Company expects to use the equipment to make a total of 700,000 snow globes over the next 3 years. BCD Company plans to use the equipment to make 400,000 snow globes in 2020, then make 250,000 snow globes in 2021, and finally make 50,000 snow globes in 2022. Calculate depreciation expense for 2021 and 2022, the accumulated depreciation for 2020 and 2021, and the Book Value for 2021 if BCD uses the units-of-production method of depreciation. Actual final exam question may be any combination of Depreciation Expense, Accumulated Depreciation and Book Value. May not be 3 years could be 4 or 5 years useful life. 10 Points Item Optional Space for Calculations: Accumulated Depreciation 2020 Depreciation Expense 2021: Accumulated Depreciation 2021 Depreciation Expense 2022: Book Value 2021 Answer