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At the beginning of 2015, your company buys a $36,000 piece of equipment that it expects to use for 4 years. The equipment has an
At the beginning of 2015, your company buys a $36,000 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 46,000 units in 2015, 52,000 units in 2016, 53,000 units in 2017, and 49,000 units in 2018. Required: a. Determine the depreciable cost b. Calculate the depreciation expense per year under the straight-line method. Depreciation Expense per year CUse the straight-line method to prepare a depreciation schedule. Depreciation Expense Accumulated Depreciation Year Net Book Value Acquisition cost 2015 2016 2017 2018 C. Use the straight-line method to prepare a depreciation schedule. Acquisition cost 2015 2016 2017 2018 d. Calculate the depreciation rate per unit under the units-of-production method. (Round your answer to 2 decimal places.) Depreciation Rate Per Unit e. Use the units-of-production method to prepare a depreciation schedule. (Do not round your Depreciation rate per unit.) Depreciation Expense Accumulated Depreciation Net Book Value Year Acquisition cost 2015 2016 2017 2018
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