Question
ABC Corporation purchased equipment on April 1, 2013 for 105,000. Estimated useful life of the equipment is 5 years and 100,000 units of production and
ABC Corporation purchased equipment on April 1, 2013 for 105,000. Estimated useful life of the equipment is 5 years and 100,000 units of production and estimated salvage value is $5,000. The company produced 15,000 units in 2014. Calculate the depreciation expense in 2014 under:
A). Straight line method
B). Sum of the years digits
C). Double declining method
D). Units of production method
E). Which method results in the lowest book value at the end of 2014? Explain.
F). Which method results in the lowest book value at the end of the useful life? Explain.
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