Computing Depreciation Under Alternative Methods

Computing Depreciation Under Alternative Methods Equipment costing $$195,000$ is expected to have a residual value of $$15,000$ at the end of its six$-$year useful life. The equipment is metered so that the number of units processed is counted. The equipment is designed to process $1,500,000$ units in its lifetime. In Year $1$ and Year $2,$ the equipment processed $280,000$ units and $205,000$ units respectively. Calculate the depreciation expense for Year $1$ and Year $2$ using each of the following methods:

a$.$ Straight$-$line $($Round to nearest dollar$)$

Year $1$Answer $1$Year $2$Answer $2$

$$

b$.$ Double$-$declining$-$balance $($Round to nearest dollar$)$

Year $1$Answer $3$Year $2$Answer $4$

$$

c$.$ Units of production $($Round to nearest dollar$)$

Year $1$Answer $5$Year $2$Answer $6$