Question
Sorenson, Inc. purchased equipment that cost $23,000. It has an estimated salvage value of $3,000, and an estimated useful life of 5 years, or
Sorenson, Inc. purchased equipment that cost $23,000. It has an estimated salvage value of $3,000, and an estimated useful life of 5 years, or 400,000 units. The usage is as follows: Year Actual units 1 130,000 2 100,000 3 60,000 4 70,000 5 40,000 For each year, calculate depreciation expense, accumulated depreciation and book value under each method. Straight line Year 1 Depreciation Accumulated Depreciation Book Value 2 3 4 5 20,000 3,000 Units of Production Year Depreciation Accumulated Depreciation Book Value 1 2 3 4 5 20,000 3,000 Double Declining Balance Year Depreciation Accumulated Depreciation Book Value 1 2 3 4 5 20,000 3,000 I
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