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Straight-Line and Units-of-Production Methods Assume that Sample Company purchased factory equipment on January 1, 2017, for $75,000. The equipment has an estimated life of five

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Straight-Line and Units-of-Production Methods Assume that Sample Company purchased factory equipment on January 1, 2017, for $75,000. The equipment has an estimated life of five years and an estimated residual value of $7,500. Sample's accountant is considering whether to use the straight-line or the units-of-production method to depreciate the asset. Because the company is beginning a new production process, the equipment will be used to produce 10,000 units in 2017, but production subsequent to 2017 will increase by 10,000 unts each year. Required: 1. Calculate the depreciation expense, accumulated depreciation, and book value of the equipment under both methods for each of the five years of its life. Enter al amounts as positive values Straight-line method: Annual Year Depreciation Accumulated Depreciation Book Value 2017 S 2018 2019 2020 ZUZI Units-of-production method: Annual Depreciation Accumulated Depreciation Book Value Year 2017 2018 2019 III 2020 2021

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