on December 27, 2014 wolcott windows purchased a pieceof equipment for 107,500. the estimated useful life of theequipment is either three years or 60,000 units, with a residualvalue of 10,500. the company has a December 31 fiscal year end andnormally used straight-line detection. management us consideringthe merits of using the units of production or diminishing balancemethod of detection instead of the straight line method. the actualnumbers of units produced by the equipment were 10,000 in 2015,20,000 in 2016 and 29,000 in 2017. the equipment was sold onJanuary 5, 2018, for 15,000.
a) calculate the depreciation for the equipment for each year.under 1) the straight line method 2) the diminishing balance methodusing 40% rate and 3) units of production
d
b) calculate the gain or loss on the sale of equipment under eachof the three methods l.
c) calculate the total depreciation expense plus the loss on sales( minus the gain on sale) under each of the three depreciationmethods. comment on your results
