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Lawson Company purchased Equipment on January 1, 2020 for $10,000. The estimated usefull life of the equpment is five years or 100,000 units. The
Lawson Company purchased Equipment on January 1, 2020 for $10,000. The estimated usefull life of the equpment is five years or 100,000 units. The salvage value is estimated to be $1,000. During 2020 the equipment was used to produce 25,000 units. First, in the spaces below put the necessary data to be used in the calculations. Second, in the boxes below, calculate depreciation for 2020 using each of the methods indicated. Place your answers in the boxes under the name for each method. Notice the effect of the varying depreciation methods on Net Income in the Income Statements to the right. NOTE: You will be graded on the formulas you create to calculate the amount of depreciation. Do not just calculate on paper and put the answers in this spreadsheet! Cost EUL in Years 5 EUL in Units 5 Salvage Value B Units Produced this Year
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