On January 1, 2024, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the
Question:
On January 1, 2024, the Allegheny Corporation purchased equipment for $115,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce
220,000 units during its life.
Required:
Calculate depreciation for 2024 and 2025 using each of the following methods. Round all computations to the nearest dollar.
1. Straight line
2. Double-declining balance
3. Units of production (units produced in 2024, 30,000; units produced in 2025, 25,000)
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