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At the beginning of 2020, your company buys a $35,600 piece of equipment that it expects to use for 4 years. The equipment has an
At the beginning of 2020, your company buys a $35,600 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: 44,000 units in 2020, 47,000 units in 2021, 55,000 units in 2022, and 54,000 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.
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