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Preparing Depreciation Schedules Using Various Depreciation Methods ISPN Company acquired equipment that cost $36,000 on January 1, 2020, which will be depreciated on the assumption

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Preparing Depreciation Schedules Using Various Depreciation Methods ISPN Company acquired equipment that cost $36,000 on January 1, 2020, which will be depreciated on the assumption that it will last six years and have a $2,400 residual value. Several possible methods of depreciation are under consideration. Required Prepare a schedule that shows annual depreciation expense and year-end accumulated depreciation and book value over the asset's useful life assuming the following a. Sum-of-the-years'-digits depreciation method. b. Units-of-production depreciation method. Estimated output is a total of 105,000 units, of which 12,000 will be produced in the first year, 18,000 in the second and third years, 15,000 in the fourth year, and 21,000 in the fifth and sixth years. Sum-of-the-years'-digits Units-of-production a. Sum of the Years' Digits Depreciation Method For the Period End of Period Reporting Depreciation Accumulated Book Period Expense Depreciation Value Jan 1, 2020 Dec 31, 2020 $ Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 $ Preparing Depreciation Schedules Using Various Depreciation Methods ISPN Company acquired equipment that cost $36,000 on January 1, 2020, which w years and have a $2,400 residual value. Several possible methods of depreciation a Required Prepare a schedule that shows annual depreciation expense and year-end accumu life assuming the following. a. Sum-of-the-years'-digits depreciation method. b. Units-of-production depreciation method. Estimated output is a total of 105,000 18,000 in the second and third years, 15,000 in the fourth year, and 21,000 in the fi Sum-of-the-years'-digits Units-of-production b. Units-of-production Depreciation Method For the Period End of Period Reporting Depreciation Accumulated Book Period Expense Depreciation Value Jan 1, 2020 $ Dec. 31, 2020 $ $ Dec. 31, 2021 Dec 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Dec 31, 2025

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