Exercise 8-3 Straight Line and Units of Production Methods

Instructions are in the attachment

Exercise 83 StraightLine and Units of Production Methods Assume that Sample Company purchased factory equipment on January 1, 2012, for $60,000. The equipment has an estimated life of five years and an estimated residual value of $6,000. Samples accountant is considering whether to use the straightline or the unitsofproduction method to depreciate the asset. Because the company is beginning a new production process, the equipment will be used to produce 10,000 units in 2012, but production subsequent to 2012 will increase by 10,000 units each year. Required Calculate the depreciation expense, accumulated depreciation, and book value of the equipment under the straightline method for each of the five years of its life. Would the unitsofproduction method yield reasonable results in this situation? Explain