1. ABC Corporation has the following information regarding a piece of manufacturing equipment that was purchased on January 1, 2015.

   Cost of the equipment = $900,000

   Estimated residual value = $130,000

   Useful life = 5 years

   Total productive capacity = 1,400,000 units

   Estimated production in 2015 = 200,000 units

   Estimated annual production next 4 years = 300,000 units per year

   What is the annual depreciation expense for 2015 if ABC Corporation uses the straight-line method of depreciation?

   	a.	$180,000
   	b.	$144,000
   	c.	$168,000
   	d.	$154,000

1. ABC Corporation has the following information regarding a piece of manufacturing equipment that was purchased on January 1, 2015.

   Cost of the equipment = $900,000

   Estimated residual value = $130,000

   Useful life = 5 years

   Total productive capacity = 1,400,000 units

   Estimated production in 2015 = 200,000 units

   Estimated annual production next 4 years = 300,000 units per year

   What is the carrying amount of the asset at December 31, 2018 if ABC Corporation uses the units-of-production method of depreciation?

   	a.	$295,000
   	b.	$274,000
   	c.	$460,000
   	d.	$192,857
   	e.	$385,714

ABC Corporation has the following information regarding a piece of manufacturing equipment that was purchased on January 1, 2015.

Cost of the equipment = $900,000

Estimated residual value = $130,000

Useful life = 5 years

Total productive capacity = 1,400,000 units

Estimated production in 2015 = 200,000 units

Estimated annual production next 4 years = 300,000 units per year

What is the carrying amount of the asset at December 31, 2017 if the company uses the double-declining balance method of depreciation?