At the beginning of 2020, your company buys a $31,600 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: 45,000 units in 2020, 50,000 units in 2021, 55,000 units in 2022, and 50,000 units in 2023.

Required:

Determine the depreciable cost.

Calculate the depreciation expense per year under the straight-line method.

Use the straight-line method to prepare a depreciation schedule.

Calculate the depreciation rate per unit under the units-of-production method.

Use the units-of-production method to prepare a depreciation schedule.