At the beginning of 2017,your company buys a $30,000 piece of equipment that it expects to use for 4 years.The equipment has an estimated residual value of $2,000.The company expects to produce a total of 200,000 units.Actual production is as follows: 44,000 units in 2017,53,000 units in 2018,51,000 units in 2019,and 52,000 units in 2020.
Required:
Part a.Determine the depreciable cost.
Part b.Calculate the depreciation expense per year under the straight-line method.
Part c.Use the straight-line method to prepare a depreciation schedule (that shows the Depreciation Expense,Accumulated Depreciation,and Net Book Value by year).
Part d.Calculate the depreciation rate per unit under the units-of-production method.
Part e.Use the units-of-production method to prepare a depreciation schedule (that shows the Depreciation Expense,Accumulated Depreciation,and Net Book Value by year).

Question

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The Answer of At the beginning of 2017,your company buys a $30,000 piece of equipment that it expects to use for 4 years.The equipment has an estimated residual value of $2,000.The company expects to produce a total of 200,000 units.Actual production is as follows: 44,000 units in 2017,53,000 units in 2018,51,000 units in 2019,and 52,000 units in 2020.
Required:
Part a.Determine the depreciable cost.
Part b.Calculate the depreciation expense per year under the straight-line method.
Part c.Use the straight-line method to prepare a depreciation schedule (that shows the Depreciation Expense,Accumulated Depreciation,and Net Book Value by year).
Part d.Calculate the depreciation rate per unit under the units-of-production method.
Part e.Use the units-of-production method to prepare a depreciation schedule (that shows the Depreciation Expense,Accumulated Depreciation,and Net Book Value by year).

At the Beginning of 2017,your Company Buys a $30,000 Piece