Payne Company purchased equipment on account on September 3, 2019 at an invoice price of $210,000. On September 4th, it paid $4,400 for delivery of the equipment. A one-year, $1,975 insurance policy on the equipment was purchased on September 6, 2019. On September 20,2019, Payne paid $5,600 for installation and testing of the equipment. The equipment was ready for use on October 1, 2019.

Payne estimates that the equipment's useful life will be four years, with a residual value of $15,000. It also estimates that, in terms of activity, the equipment's useful life will be 82,000 units. Payne has a September 30 fiscal year end. Assume that actual usage is as follows:

Year ended Sept 30 # of units

2020

2021

2022

2023

16,750

27,600

22,200

16,350

1. Determine the cost of the equipment
2. Prepare depreciation

schedules for the life of the asset under the following depreciation methods:

1. straight-line
2. double diminishing-balance
3. units of production

24 25 bstraight-line 33 Doubledimishing balance 41 Units of Production 42 Year \\begin{tabular}{|l|l|l|l|l|} \\hline \\( \\begin{array}{l}\\text { Units of } \\\\ \\text { prodcution }\\end{array} \\) & \\( \\begin{array}{l}\\text { Deprec } \\\\ \\text { per unit }\\end{array} \\) & \\( \\begin{array}{l}\\text { Deggeciation } \\\\ \\text { Expense }\\end{array} \\) & Accum Deprec & Carrying Amount \\\\ \\hline & & & & \\\\ \\hline & & & & \\\\ \\hline & & & & \\\\ \\hline \\end{tabular}