Question
Cardine Company acquired and placed into use equipment on January 2, 2017, at a cash cost of $1,870,000. Transportation charges amounted to $15,000, and installation
Cardine Company acquired and placed into use equipment on January 2, 2017, at a cash cost of $1,870,000. Transportation charges amounted to $15,000, and installation and testing costs totaled $110,000.
The equipment was estimated to have a useful life of nine years and a salvage value of $75,000 at the end of its life. It was further estimated that the equipment would be used in the production of 3,840,000 units of product during its life. During 2017, 852,000 units of product were produced.
How do I compute the depreciation to the nearest dollar for the year ended December 31, 2017, using the following methods:
a.Straight-line method
b.Units-of-production method
c.Sum-of-the-years'-digits method
d.Double-declining-balance method (use a fraction rather than a percentage)
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