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On January 1, 2021, the Alleghany Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual
On January 1, 2021, the Alleghany Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $16,000. The equipment is expected to produce 400,000 units during its life.
1. Straight-line. Straight-Line Depreciation Choose Denominator: Choose Numerator: Annual Depreciation Expense Depreciation Expense Formula Amounts Depreciation Expense 2021 2022 2. Double-declining-balance. Double Declining-Balance Method * Choose Denominator: Choose Numerator: - Depreciation Expense + Depreciation Expense Formula X 96 Amount for 2021 Amount for 2022 Select formula for Units of Production Depreciation: Calculate 2021 depreciation expense: Depreciation per unit rate Units produced in 2021 Depreciation in 2021 Calculate 2022 depreciation expense: Depreciation per unit rate Units produced in 2022 Depreciation in 2022 Required:
Calculate depreciation for 2021 and 2022 using each of the following methods.
Part 1.) Straight-line
Part 2.) Double-declining-balance
Part 3.) Units of production (units produced in 2021, 48,000; units produced in 2022, 43,000).
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