Equipment costing \($29,000\), with a scrap value of

\($5,000\) was purchased on January 1, by Global Communications, Inc. The estimated useful life of the equipment was four years and it was expected to generate 80,000 finished units of production. Units actually produced were 14,000 in 2014 and 20,000 in 2015.

Required

Complete the following table. Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the timing of its asset replacement)? If so, how?

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Depreciation Expense Net Book Value Depreciation Method 2014 2015 Straight-line Double-declining-balance Units-of-production 2014 2015 year-end year-end