Quality Quidditch Supplies purchased some new equipment to help in the manufacturing of high-quality broomsticks. Information about the equipment is given below. They have asked that you provide the following: (1) A depreciation schedule for the equipment using the following depreciation methods: Straight Line, Double Declining Balance, Sum-of-the-Years-Digits, and Units-of-Production (2) Two graphs to help management understand the differences between the depreciation methods (a line graph for book values and a line graph for depreciation expense) (3) Your recommendation of what depreciation method they should use and WHY. Any additional insights you have would be greatly appreciated. You will NOT be able to add a new sheet. A blank sheet is provided that you can use for doing any work, but you do not need to use that sheet.
The equipment cost $395,000 and has a useful life of 5 years. The estimated residual value is $30,000 and the equipment is estimated to produce 1,400 broomsticks.
The actual number of broomsticks produced each year is given in the table below:
	Year	Broomsticks Produced
	1	280
	2	350
	3	210
	4	350
	5	210

Answer rating: 100% (QA)

Based on the given information I recommend using the units of production depreciation method for this equipment Heres why 1 Units of Production Method ... View the full answer