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

image text in transcribed Preparing Depreciation Schedules Using Various Depreciation Methods ISPN Company acquired equipment that cost $36,000 on January 1 . The equipment will be depreciated on the assumption that it will last six years and have a $2,400 residual value. 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. Units-of-Production Method b. Units-of-production Depreciation Method

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