Blume Company purchased equipment for $250,000 cash on January 1, 2013. 

The estimated life is 4 years or 300,000 units

Salvage value is estimated at $10,000. 

Actual activity was 52,500 units in 2013 and 67,500 units in 2014.

Instructions

Compute the annual depreciation expense for 2013 and 2014, and book value at December 31, 2014, under the following depreciation methods:

(1) units-of-activity, 

(2) straight-line, and

1. (3) double-declining-balance. 

Answer rating: 100% (QA)

To calculate the annual depreciation expense and book value under different depreciation methods lets go through each method one by one 1 UnitsofActivity Method This method calculates depreciation bas... View the full answer