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answer, please! On December 27, 2018, Wolcott Windows purchased a piece of equipment for $107,500. The estimated useful life of the equipment is either three
answer, please!
On December 27, 2018, Wolcott Windows purchased a piece of equipment for $107,500. The estimated useful life of the equipment is either three years or 60,000 units, with a residual value of $10,500. The company has a December 31 fiscal year end and normally uses straight-line depreciation Management is considering the merits of using the units-of-production or diminishing-balance method of depreciation instead of the straight-line method. The actual numbers of units produced by the equipment were 10,000 in 2019,20,000 in 2020, and 29,000 in 2021. The equipment was sold on January 5, 2022, for $15,000. Calculate the depreciation for the equipment for 2019 to 2021 under 1. the straight-line method 2. the diminishing-balance method, using a 40% rate; and 3. units-of-productionStep by Step Solution
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