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On January 2, 2021, Wayne Company paid $255,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee
On January 2, 2021, Wayne Company paid $255,000 for a computer system. In addition to the basic purchase price, the company paid a setup fee of $1,500, sales tax of $6,600, and $31,900 for a special platform on which to place the computer. Wayne's management estimates that the computer will remain in service for five years and have a residual value of $30,000. The computer will process 55,000 documents the first year, with annual processing decreasing by 2,500 documents during each of the next four years (that is, 52,500 documents in 2022; 50,000 documents in 2023; and so on). For help with deciding which depreciation method to use, the company president has requested a depreciation schedule for each of the three depreciation methods. If rounding is necessary, use two decimal places for the depreciation amount per document. Read the requirements. Complete the units-of-production depreciation schedule. Begin by filling out the schedule through 2022 , and then complete the schedule by entering the amounts through 2025. (Enter depreciation per unit to the nearest cent.)
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