Problem 1

Jackson Company purchased a new piece of equipment on July 1, 2021 at a cost of $36,000. The

equipment has an estimated useful life of 10 years and an estimated residual value of $6,000. During

its ten-year useful life, the equipment is expected to produce 500,000 units. The equipment actually

produced the following number of units: 2021, 25,000; 2022, 84,000; and 2023, 90,000.

Required:

(a) Calculate depreciation expense for 2021, 2022, and 2023 assuming Jackson uses straight-line

depreciation.

(b) Calculate depreciation expense for 2021, 2022, and 2023 assuming Jackson uses units-of-

production depreciation.

(c) Calculate depreciation expense for 2021, 2022, and 2023 assuming Jackson uses sum-of-the-

years-digits depreciation. Round your answers to the nearest whole dollar.

(d) Calculate depreciation expense for 2021, 2022, and 2023 assuming Jackson uses double-declining

balance depreciation.