Question
On January 1, 2014, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $87,000. The equipment is expected to
On January 1, 2014, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $87,000. The equipment is expected to have a useful life of four years or produce a total of 127,000 units. At the end of its life, the equipment is expected to have a residual value of $6,100. The equipment is expected to produce 29,210 units in 2014; 33,020 units in 2015; 35,560 units in 2016; and 29,210 units in 2017. Courier Inc.'s fiscal year ends on December 31. In the table below, fill in the missing depreciation expense and accumulated depreciation amounts using the straight-line, double-declining-balance, and units-of-production methods. Do not round your intermediate calculation. When required, round your answers to the nearest dollar.
Note: Please include Calculations.
On January 1, 2014, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $87,000. The equipment is expected to have a useful life of four years or produce a total of 127,000 units. At the end of its life, the equipment is expected to have a residual value of $6,100. The equipment is expected to produce 29,210 units in 2014; 33,020 units in 2015; 35,560 units in 2016; and 29,210 units in 2017. Courier Inc.'s fiscal year ends on December 31. In the table below, fill in the missing depreciation expense and accumulated depreciation amounts using the straight-line, double- declining-balance, and units-of-production methods. Do not round your intermediate calculation. When required, round your answers to the nearest dollar. Cost $87,000 Depreciation Expense Accumulated Depreciation Double- Unit-of- Double- Unit-of- Straight-line Declining Production Straight-line Declining Production Year Method Balance Method Method Method Balance Method Method 2014 20,225 $43,500 $18,607 $20,225 $43,500 $18,607 2015 $20,225 $21,034 $ $65,250 $39,641 $ $ 2016 $20,225 $10,875 $ $60,675 $62,293 2017 $20,225 $4,775 $18,607 $80,900 $80,900 $ As new or additional information becomes available, a company will need to recalculate its depreciation expense based on current estimates of useful life and/or residual value andStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started