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Please show numerical support for the following questions Billy Carter Enterprises purchased equipment from Kaddafi Finance Company on January 1, Year 1 for $50,000. The
Please show numerical support for the following questions
Billy Carter Enterprises purchased equipment from Kaddafi Finance Company on January 1, Year 1 for $50,000. The equipment has an estimated useful life of five years, a salvage value of $5,000 and a productive capacity of 4, 500 units. 42. Assume that Carter used the straight-line depreciation method. The book value of this equipment on December 31 of Year 3 was: a. $ 9,000. b. $10,000. c. $18,000. d. $23,000. e. $41,000. Assume that Carter used the units of activity depreciation method. If 1,000 units of product were produced by this equipment during the year, the depreciation expense amounted to: a. $ 1,000. b. $ 1, 111. c. $10,000. d. $11, 111. e. An answer may not be calculated without information about the amount of production in each of the five years. Assume that Carter used the double declining balance method of depreciation. The depreciation expense for Year 3 amounted to: a. $6, 400. b. $6, 480. c. $7, 200. d. $12,000. e. $20,000Step by Step Solution
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