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Problem 9-4A (Part Level submission) Ellette Limited purchased equipment on March 27, 2015, at a cost of $116,100. Management is contemplating the merits of using
Problem 9-4A (Part Level submission) Ellette Limited purchased equipment on March 27, 2015, at a cost of $116,100. Management is contemplating the merits of using the diminishing-balance or units-of- production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $2,100 and an estimated useful life of either four years or 40,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used n some years than in others. Assume the equipment produces the following number of units each year: 7,400 units in 2015: 10,200 units in 2016; 9,900 units in more 2017; 10,000 units in 2018; and 2,500 units in 2019. Ellette has a December 31 year end. (a) Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g. 5.28 and final answers to o decimal places, e.g. 5,275.) Straight-line method Year Carrying Depreciable Depreciation Accumulated Depreciation Cost Expense Amount 2015 2016 2017 2018 2019
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