Computing Depreciation Under Alternative Methods

Equipment costing $140,000 is expected to have a residual value of $12,500 at the end of its six-year useful life. The equipment is metered so that the number of units processed is counted. The equipment is designed to process 1,020,000 units in its lifetime. In 2016 and 2017 the equipment processed 220,000 units and 180,000 units respectively. Calculate the depreciation expense for 2016 and 2017 using each of the following methods: a. Straight-line (Round to nearest dollar)

2016	Answer
2017	Answer

b. Double-declining-balance (Round to nearest dollar)

2016	Answer
2017	Answer

c. Units of production (Round to nearest dollar)