Seasons Limited paid $135,000 to purchase equipment at the beginning of 2012. Seasons Limited estimated the useful life of the equipment to be 4 years or 200,000 units. The equipment will be considered fully amortized when the balance in the Accumulated Depreciation account reaches $120,000. The equipment produced 52,000 units in 2015.
Required:
a. Determine the estimated residual value of the equipment.
b. What is the amortizable cost of the equipment?
c. Calculate depreciation expense for 2015 under each of the following methods:

Question

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The Answer of Seasons Limited paid $135,000 to purchase equipment at the beginning of 2012. Seasons Limited estimated the useful life of the equipment to be 4 years or 200,000 units. The equipment will be considered fully amortized when the balance in the Accumulated Depreciation account reaches $120,000. The equipment produced 52,000 units in 2015.
Required:
a. Determine the estimated residual value of the equipment.
b. What is the amortizable cost of the equipment?
c. Calculate depreciation expense for 2015 under each of the following methods:

Seasons Limited Paid $135,000 to Purchase Equipment at the Beginning