Mohammad's Company purchased an equipment on July 1, 2020 for CASH $85,000. It is estimated...
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Mohammad's Company purchased an equipment on July 1, 2020 for CASH $85,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 4 - year useful life. It is also estimated that the equipment will produce total 160,000 units over its 4 -year life. Required: Answer the following independent scenario: [2*5] a) Record the purchase of equipment at July 1, 2020. b) Compute the amount of Depreciation for the year ended December 31,2013 , using the straight-line method. c) If 20,000 units of product are produced in 2020 and 30,000 units are produced in the year of 2021, calculate the depreciation expense for the year of 2020 and 2021 , use units-ofactivity method. d) Assume that the equipment was purchased on 1 of January 2020, using the double declining method of depreciation, what is the balance of accumulated depreciation on December 31,2022 ? e) Based on the information given in req (d), assume that the equipment was sold on 1 of January , 2023 and received $30,000 cash. Determine the gain or loss on disposal and record the journal
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