Carla Vista Co. purchased equipment on March 27, 2018, at a cost of $224,000. Management is contemplating the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,800 units in 2018; 20,400 units in 2019; 19,800 units in 2020; 20,000 units in 2021; and 5,000 units in 2022. Carla Vista has a December year end. (a) Your Answer Correct Answer Your answer is correct. Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, eg. 5.28 and final answers to o decimal places, eg. 5,275.) Straight-line method: Depreciable Amount Depreciation Expense Year Accumulated Depreciation Carrying Amount 26000 $ 2018 $ 2019 2020 2021 2022 2160 21160001 2116000 401500 540700 54000 540002 13500 20050 250 1495001 2025002 2160001 11: ka 117010 7551001 211500 8.000 Double-diminishing-balance method: Opening Carrying Amount Depreciation Expense Accumulated Depreciation Carrying Amount Year $ 2018$ 2019 2020 2021 2022 2240001$ 14.00007 701010101 135 000 17500 84000 $ 700001 350001 175001 9500 84000 11540001 18990001 2075001 2160001 222000 140000 7010001 35000/01 175001 BODO Units-of-production method: Depreciation Expense Accumulated Depreciation Carrying Amount Year Units-of-Production 2018 2019 2020 2021 2022 14800 $ 202400 19 8001 201000 50001 39.960 $ 55.0802 5k 2.60 54000 Ek Loo 39.960 95.040 148.500 202.500 Kolor] 222000 11840402 128927607 75500 21500 8000 e Textbook and Media Solution Attempts: 3 of 3 used Question Part Score 33/33 (b) Compare the total depreciation expense and accumulated depreciation under each of the three methods over the life of the equipment. (Round answers to O decimal places, e.g. 5,275.) Straight-Line Units-of-Production Double-Diminishing-Balance $ Total depreciation expense $ Accumulated depreciation Save for Later Attempts: 0 of 3 used Submit