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Bron Sodas Ltd. purchased bottling line equipment on January 1, 2020, for $328,320. It is expected to have a useful life of four years
Bron Sodas Ltd. purchased bottling line equipment on January 1, 2020, for $328,320. It is expected to have a useful life of four years and a residual value of $39,000. The machine is expected to handle a total of 2,411,000 bottles during its life, distributed as follows: 694,000 in 2020, 626,000 in 2021, 573,000 in 2022, and 518,000 in 2023. The company has a December 31 year end. Calculate the amount of depreciation to be charged each year, using each of the following methods: i. Straight-line Straight-line method depreciation $ per year ii. Units-of-production (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answer to O decimal places, e.g. 125.) Units-of-production method depreciation $ Year 2020 $ 2021 $ 2022 $ 2023 $ iii. Double-diminishing-balance Rate Year 2020 $ 2021 $ 2022 $ 2023 $ % Which method results in the highest depreciation expense: i. during the first two years? ii. over all four years? per unit
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