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Please help me out :) Problem 9-4A a-b (Part Level Submission) Carla Vista Ca. purchased equipment on March 27, 2018, at a cost of $224,000.
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Problem 9-4A a-b (Part Level Submission) Carla Vista Ca. purchased equipment on March 27, 2018, at a cost of $224,000. Management is contemplating the marits of using the diminishing balance or units of production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some vears than in others. Assume the equipment produces the following number of units each year: 14,800 units in 2018; 20,400 units in 2019, 19.800 units in 2020, 20,000 units in 2021; and 5,000 units in 2022. Carla Vista has a December vear end. (a) Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g. 5.28 and final answers to O decimal places, e.g. 5,275.) Straight line method: Depreciable Depreciation Accumulated Carrying Year Cost Expense Depreciation Amount 215000 $40980.6: 2018 2019 2020 216000 51000 215000 54000 2021 216000 S1000 2022 216000 13019.11 Double-diminishing-balance method: Opening Carrying Depreciation Accumulated Carrying Year Amount Expense Depreciation Amount 2018 2019 2020 2021 2022 Units-of-production method: Depreciation Accumulated Carrying Year Units-of-Production Expense Depreciation Amount 2018 2019 2020 2021 2022Step by Step Solution
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