On January Pharoah Company acquired equipment costing $ which will be depreciated on the assumption that the equipment will be useful for five years and have a residual value of $ The estimated output from this equipment is as follows: units; units; units; units; units. The company is now considering possible methods of depreciation for this asset.
a
Calculate what the depreciation expense would be for each year of the asset's life, if the company chooses:
i The straightline method
Straightline depreciation $ per year
ii The unitsofproduction method Round depreciation per unit to decimal places, eg and depreciation expense to decimal places, eg
Unitsofproduction method depreciation $
per unit
Year
Depreciation Expense
$
$
$
$
$
iii. The doublediminishingbalance method
Rate
Year
Depreciation Expense
$
$
$
$
$
