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On December 27, 2014, Ivanhoe Windows purchased a piece of equipment for $101,500. The estimated useful life of the equipment is either three years or 53,000 units, with a residual value of $5,750. The company has a December 31 fiscal year end and normally uses straight-line depreciation. Management is considering the merits of using the units-of-production or the diminishing-balance method of depreciation instead of the straight-line method. The actual numbers of units produced by the equipment were 8,250 in 2015, 15,750 in 2016, and 28,000 in 2017. The equipment was sold on January 5, 2018, for $15,000. Calculate the depreciation for the equipment for 2015 to 2017 under 1. the straight-line method 2. the diminishing-balance method, using a 40% rate; and 3. units-of-production (Round depreciable amount per unit to 3 decimal places, e.g. 1.252 and the final answers to 0 decimal places, e.g. 126.) Depreciation Expense Straight-Line Diminishing-Balance Units-of-Production 2015 $ $ 2016 2017 Calculate the gain or loss on the sale of the equipment under each of the three methods. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Gain (loss) on sale 1. Straight-line 2. Diminishing-balance 1 3. Unit-of-production Calculate the total depreciation expense plus the loss on sale (or minus the gain on sale) under each of the three depreciation methods. Net Expense 1. Straight-line $ 2. Diminishing-balance 3. Unit-of-production $ $

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