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Question 4 (17 marks) On March 1, 2019, an equipment costing $130,000 with a four year service life and an estimated $1,000 residual value was

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Question 4 (17 marks) On March 1, 2019, an equipment costing $130,000 with a four year service life and an estimated $1,000 residual value was purchased. It was also estimated that the equipment would produce 45,000 units during its life. The actual units produced during its first 2 years of operation were 17,000 and 18,000 respectively. Required: a. Calculate the amount of depreciation expense for calendar years 2019 and 2020 in the table provided. The company uses the straight-line method of depreciation. b. Make a journal entry for 2019 c. What is the net book value at the end of 2019 d. If you were a new accountant in a company and you were asked to determine how best to depreciate a new equipment they just bought, how would you determine the best method? What information would be useful to you in determining the best method? ning the best method? Date Depreciation expense Accumulated Depreciation Expense Net Book Value

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