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I need an answer On January 1, 2020, Rasmus Mining Ltd. purchased new mining equipment costing 5386,440, which will be depreciated on the assumption that
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On January 1, 2020, Rasmus Mining Ltd. purchased new mining equipment costing 5386,440, which will be depreciated on the assumption that the equipment will be useful for four years and have a residual value of $29,200 when the company is finished using it. The estimated output from this equipment, in tonnes, is as follows: 2020-104,000; 2021-31,400; 2022-102,800: 2023-59,500. The company is now considering possible methods of depreciation for this asset. (a) Calculate what the depreciation expense would be for each year of the asset's life, if the company chooses: i. The straight-line method Straight-line depreciations per year ii. The units-of-production method (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 125.) Units-of-production method depreciation per unit Year 2020 $ 2021 $ 2022 $ 2023 $ ii. The double-diminishing-balance method Rate 90 Year 2020 $ 2021 $ 2022 2023 $Step by Step Solution
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