1.Depreciation Units of Production Method

On January 1, 2022, equipment costing $240,000 was purchased and placed in service. The equipment is expected to produce 140,000 units during its useful life and has estimated salvage value of $20,000. Following is the actual number of units produced per year:

2022 = 30,000 units

2023 = 25,000 units

2024 = 0 units (equipment was idle)

2025 = 40,000 units

2026 = 45,000 units

Part A: Calculate the depreciation expense per unit produced.

Part B: Calculate the depreciation expense for 2025.

Part C: Prepare the table showing the Undepreciated Balance (Book Value) for each year the equipment is in use.