Jackson Company purchased a new piece of equipment on October 1, 2023 at a cost of $36,000. The equipment has an estimated useful life of 10 years and an estimated residual value of $6,000. During its ten-year useful life, the equipment is expected to produce 500,000 units. The equipment actually produced the following number of units: 2023, 15,000; 2024, 84,000; and 2025, 90,000.

Problem 1

Required:

(a) Calculate depreciation expense for 2023, 2024, and 2025 assuming Jackson uses straight-line depreciation.

(b) Calculate depreciation expense for 2023, 2024, and 2025 assuming Jackson uses units-of-production depreciation.

(c) Calculate depreciation expense for 2023, 2024, and 2025 assuming Jackson uses sum-of-the- years-digits depreciation. Round your answers to the nearest whole dollar.

(d) Calculate depreciation expense for 2023, 2024, and 2025 assuming Jackson uses double-declining balance depreciation.