Blossom Company purchased equipment on account on September 3, 2019, at an invoice price of $180,000. On September 4, 2019, it paid $3,700 for delivery of the equipment. A one-year, $1,975 insurance policy on the equipment was purchased on September 6, 2019. On September 20, 2019, Blossom paid $4,300 for installation and testing of the equipment. The equipment was ready for use on October 1, 2019. Blossom estimates that the equipment's useful life will be four years, with a residual value of $6,000. It also estimates that, in terms of activity, the equipment's useful life will be 72,800 units. Blossom has a September 30 fiscal year end. Assume that actual usage is as follows:

# of Units		Year Ended September 30
15,400		2020
23,700		2021
20,000		2022
14,600		2023

Determine the cost of the equipment.

Cost of equipment

$

Question Part Score

--/1

Prepare depreciation schedules for the life of the asset under the following depreciation methods:

1.		straight-line
2.		double diminishing-balance
3.		units-of-production

(Round depreciable amount per unit to 2 decimal places, e.g. 5.27 and the final answers to 0 decimal places, e.g. 5,276.) 1. STRAIGHT-LINE DEPRECIATION

								End of Year
Year		Depreciable Amount		Depr. Rate		=	Depr. Expense	Accum. Depr.	Carrying Amount
2020		$			%		$	$	$
2021					%
2022					%
2023					%

2. DOUBLE DIMINISHING-BALANCE DEPRECIATION

									End of Year
Year		Carrying Amount Beginning Of Year		Depr. Rate		=	Depr. Expense		Accum. Depr.	Carrying Amount
2020		$			%		$		$	$
2021					%
2022					%
2023					%

3. UNITS-OF-PRODUCTION

								End of Year
Year		Units of Production		Depr. Amt/Unit	=	Depr. Expense		Accum. Depr.	Carrying Amount
2020				$		$		$	$
2021
2022
2023

Question Part Score

--/13

Which method would result in the highest profit for the year ended September 30, 2021? Over the life of the asset?

_________ method would result in the highest profit for the year ended September 30, 2021. Over the life of the asset, ________ result in the same total depreciation expense.