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On January 1, 2020, SugarBear Company acquired equipment costing $182,500, which will be depreciated on the assumption that the equipment will be useful for five
On January 1, 2020, SugarBear Company acquired equipment costing $182,500, which will be depreciated on the assumption that the equipment will be useful for five years and have a residual value of $14,500. The estimated output from this equipment is as follows: 202015,000 units; 202121,000 units; 202233,000 units; 202328,000 units; 202415,000 units. The company is now considering possible methods of depreciation for this asset. Calculate what the depreciation expense would be for each year of the asset's life, if the company chooses:
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 |
The straight-line method__________________ |
Straight-line depreciation | $______________ | per year |
Year 2020 $ 2021 $ 2022 $ 2023 $ 2024 $ ii. The double-diminishing-balance method Rate % Year 2020 $ 2021 $ 2022 $ 2023 $ 2024 $
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