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please help On December 27, 2021, Sheridan Windows purchased a piece of equipment for $103,000. The estimated useful life of the equipment is either four
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On December 27, 2021, Sheridan Windows purchased a piece of equipment for $103,000. The estimated useful life of the equipment is either four years or 50,000 units, with a residual value of $7,000. The company has a December 31 fiscal year end and normally uses straight-line depreciation. Management is considering the merits of using the units-of-production or diminishing-balance method of depreciation instead of the straight-line method. The actual numbers of units produced by the equipment were 9,000 in 2022,16,500 in 2023, and 23,500 in 2024. The equipment was sold on January 5, 2025, for $15,000. (a) Calculate the depreciation for the equipment for 2022 to 2024 under 1. the straight-line method 2. the diminishing-balance method, using a 40% rate; and 3. units-of-production (Round depreciable amount per unit to 3 decimal places, eg. 1.252 and the final answers to 0 decimal places, e.8. 126.) Step by Step Solution
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