Seasons Limited paid $135,000 to purchase equipment at the beginning of 2014.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 2017.
Required:
a.Determine the estimated residual value of the equipment.
b.What is the amortizable cost of the equipment?
c.Calculate depreciation expense for 2017 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 2014.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 2017.
Required:
a.Determine the estimated residual value of the equipment.
b.What is the amortizable cost of the equipment?
c.Calculate depreciation expense for 2017 under each of the following methods:

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