The Tolbert Corporation purchased equipment on 1 January, 2019, for $60,000. It is estimated that the equipment will have a $5,000 residual value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.
Required: Answer the following independent questions.
1. Calculate the amount of depreciation expense for the year ended 31 December, 2019, using the straight-line method of depreciation.
2. If 16,000 units of product are produced in 2019 and 24,000 units are produced in 2020, what is the carrying amount of the equipment at 31 December, 2020? The company uses the units-of-production depreciation method.

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The Answer of The Tolbert Corporation purchased equipment on 1 January, 2019, for $60,000. It is estimated that the equipment will have a $5,000 residual value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.
Required: Answer the following independent questions.
1. Calculate the amount of depreciation expense for the year ended 31 December, 2019, using the straight-line method of depreciation.
2. If 16,000 units of product are produced in 2019 and 24,000 units are produced in 2020, what is the carrying amount of the equipment at 31 December, 2020? The company uses the units-of-production depreciation method.

The Tolbert Corporation Purchased Equipment on 1 January, 2019, for $60,000