Assume that Alabama 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 $6,000.Alabama'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 5,000 units in 2017,but production subsequent to 2017 will increase by 5,000 units each year.
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Required
Calculate the depreciation expense,accumulated depreciation,and book value of the equipment under both methods for each of the five years of its life.Would the units-of production method yield reasonable results in this situation? Explain.

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The Answer of Assume that Alabama 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 $6,000.Alabama'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 5,000 units in 2017,but production subsequent to 2017 will increase by 5,000 units each year.
?
Required
Calculate the depreciation expense,accumulated depreciation,and book value of the equipment under both methods for each of the five years of its life.Would the units-of production method yield reasonable results in this situation? Explain.

Assume That Alabama Company Purchased Factory Equipment on January 1,2017,for