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On January 1, 2012, Scout Manufacturing purchased new equipment for $145,000. The equipment was estimated to have a five-year useful life and a salvage value

On January 1, 2012, Scout Manufacturing purchased new equipment for $145,000. The equipment was estimated to have a five-year useful life and a salvage value of $15,000. Scout estimates that the equipment will produce 81,250 units over its useful life. However, it actually produces 18,000 units in 2012, 17,500 units in 2013, 17,750 units in 2014, 17,000 units in 2015, and 15,000 units in 2016. Depreciation Schedule

Straight-Line Method

year Depreciation Base Useful Life Depreciation Expense Net Book Value 2012 130000 5 26000 119000 2013 130000 5 26000 93000 2014 130000 5 26000 67000 2015 130000 5 26000 41000 2016 130000 5 26000 15000

I got this Table correct.

Depreciation Schedule

Double Declining Balance Method

year Net Book Value (beg of year) Declining-Balance Rate Depreciation Expense Net Book Value (End of year)
2012 145000 40
2013 40
2014 40
2015 40
2016 40 15000

Depreciation Schedule

Units of Activity Method

year units Depreciation Expense Accumulated Depreciation Net Book Value
2012 18000
2013 17500
2014 17750
2015 17000
2016 15000 130000 15000

B)Assuming a tax rate of 30%, how much more could Scout defer in taxes in the first year by using the double-declining-balance method versus the straight-line method? $____?

Everything I filled in is right. struggling to find the rest and need some help. Thank you.

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