50.1K
Verified Solution
Link Copied!
Problem 1
Jackson Company purchased a new piece of equipment on July 1, 2021 at a cost of $36,000. The
equipment has an estimated useful life of 10 years and an estimated residual value of $6,000. During
its ten-year useful life, the equipment is expected to produce 500,000 units. The equipment actually
produced the following number of units: 2021, 25,000; 2022, 84,000; and 2023, 90,000.
Required:
(a) Calculate depreciation expense for 2021, 2022, and 2023 assuming Jackson uses straight-line
depreciation.
(b) Calculate depreciation expense for 2021, 2022, and 2023 assuming Jackson uses units-of-
production depreciation.
(c) Calculate depreciation expense for 2021, 2022, and 2023 assuming Jackson uses sum-of-the-
years-digits depreciation. Round your answers to the nearest whole dollar.
(d) Calculate depreciation expense for 2021, 2022, and 2023 assuming Jackson uses double-declining
balance depreciation.
Answer & Explanation
Solved by verified expert
