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On May 1, 2020, Lansbury Company purchases equipment at a cost of $66,000. The asset is expected to have a life of 5 years and
On May 1, 2020, Lansbury Company purchases equipment at a cost of $66,000. The asset is expected to have a life of 5 years and a salvage value of $6,000. The production capacity of the equipment during its useful life is 200,000 units. Required: Using Excel prepare a table for the computation of depreciation expense during the five-year period under the: 1) straight-line method; 2) units of production (activity) method; 3) sum of the years' digits method; and 4) the double-declining method. A table for each method is required. Include supporting computations. Round all computations to the nearest dollar. For the activity method, assume the following number of units of production for each year. Year Units 2020 44,000 2021 48,000 2022 30,000 2023 40,000 2024 42,000 You can use the following headings and adapt them if needed for the specific method: Year Depreciable Depreciation Base Rate Current Accumulated Depreciation Depreciation Expense
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