ATG121 Financial Accounting Example: Depreciation Methods 1 The Walter Company has purchased new equipment costing $45,000. The company determines that the life of the equipment is 6 years and the salvage value is 10% of the purchase price. Calculate he depreciation expense for the new equipment if the purchase was made on September 1, 2019. 2 The Walter Company has purchased new equipment costing S45,000. The company determines that the salvage value is 10% of the purchase price. The total number of units that will be produced is 180,000 The company estimates that in the year 2019 the equipment will produce 27,000 units, in 2020 the equipment will produce 36,000 units, in 2021, the equipment will produce 39,600 units, in 2022, the equipment will produce 48,600 units, in 2023, the equipment will produce 18,000 units, and in year 2024 the equipment will produce 3,600 units. Calculate the depreciation expense for years 2019 through 2024 using the units of production method, 3 The Walter Company has purchased new equipment costing $45,000. The company determines that the life of the equipment is 6 years and the salvage value is 10% of the purchase price Calculate he depreciation for the new equipment if the purchase was made on September 1, 2019. Calculate the depreciation expense using the double declining balance method