1. Create a sample problem.
   • Company Name
   • Purchase Date
   • Asset Cost
   • Estimated Useful Life
   • Estimated Lifetime Production
   • Estimated Residual Value
   • Actual Units of Production in 2020
   • Actual Units of Production in 2021
2. Calculate the depreciation expense for 2021, using EITHER the Units-of-Activity Method or the Double-Declining-Balance Method.

SAMPLE PROBLEM: Fansetty Company purchased a new manufacturing machine on March 1, 2020 for $67,250. They estimate the machine to last for 8 years and produce 1,000,000 units. At the end of its estimated useful life, they expect the machine to have a residual value of $4,250. 90,000 actual units were produced in 2020 and 115,000 actual units were produced in 2021. Machine cost $67,250 - Estimated Residual Value $4,250 = $63,000 Initial Depreciable Basis

$63,000 Depreciable Basis/ Estimated Units of Production 1,000,000 = Depreciation per unit $0.063

$0.063 x actual production 115,000 units = $7,245 Depreciation Expense for 2021 NOTE: You may use the same format as the sample problem, just change the company and the data. I will leave a like when this is completed. Thanks.