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Question 2 of 4 (25 marks) On April 1, 2018, Allen Company of Ontario purchased a new piece of equipment for the construction company, and

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Question 2 of 4 (25 marks) On April 1, 2018, Allen Company of Ontario purchased a new piece of equipment for the construction company, and will keep the equipment for 4 years, with a plan to selling it in April 2022. The cost of the new equipment was $80,000 plus HST of $10,400. The equipment is expected to last for 4 years, and have a salvage value of $20,000 at the end of 4 years. The total planned output for the life of the machine is 21,200 square metres. The planned output for the next 4 years is as follows: 2018 - 3,900 m2 2019 - 4,200 m2 2020 - 4,600 m2 2021 - 4,800 m2 2022 - 1,200 m2 This company has a policy of taking depreciation in any year proportional to the number of months the equipment is used or how many square metres of board are produced. Required: Please calculate the depreciation for the term April 1, 2018 to April 1, 2022 using: A) Straight Line B) Units of Production C) Double declining balance

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