Course Content / Introduction / Chapter 12 Homework Chapter 12 Homework Question 3 Incorrect Mark 0.00 out of 10.00 Flag question Question 3 Incorrect Mark 0.00 out of 10.00 Flag question Preparing Depreciation Schedules Using Various Depreciation Methods ISPN Company acquired equipment that cost $36,000 on January 1. The equipment will be depreciated on the assumption that it will last six years and have a $2,400 residual value. Required Prepare a schedule that shows annual depreciation expense, and year-end accumulated depreciation and book value, over the asset's useful life assuming the following. a. Sum-of-the-years'-digits depreciation method. b. Units-of-production depreciation method. Estimated output is a total of 105,000 units, of which 12,000 will be produced in the first year, 18,000 in the second and third years, 15,000 in the fourth year, and 21,000 in the fifth and sixth years. Preparing Depreciation Schedules Using Various Depreciation Methods ISPN Company acquired equipment that cost $36,000 on January 1. The equipment will b Required Prepare a schedule that shows annual depreciation expense, and year-end accumulated a. Sum-of-the-years'-digits depreciation method. b. Units-of-production depreciation method. Estimated output is a total of 105,000 units, 18,000 in the second and third years, 15,000 in the fourth year, and 21,000 in the fifth an Sum-of-the-Years'-Digits Method Units-of-Production Method a. Sum-of-the-Years'-Digits Depreciation Method For the Period End of Period Reporting Period Jan. 1, Year 1 Depreciation Accumulated Expense Depreciation Book Value $ 25,916 x Dec. 31, Year 1 $ 0 * $ 0 0 % Dec. 31, Year 2 0 % 0 25,916 Dec. 31, Year 3 0 0 25,916 Dec. 31, Year 4 0 0 25,916 Dec. 31, Year 5 0 0 25,916 Dec. 31, Year 6 0 0 % 25,916 Units-of-Production Method Sum-of-the-Years'-Digits Method b. Units-of-production Depreciation Method For the Period End of Period Reporting Depreciation Accumulated Period Expense Depreciation Book Value Jan. 1, Year 1 $ 0 Dec. 31, Year 1 $ 0 0 0 Dec. 31, Year 2 0 0 25,916 Dec. 31, Year 3 0 0 25,916 Dec. 31, Year 4 0 0 25,916 Dec. 31, Year 5 0 0 25,916 Dec. 31, Year 6 0 0 25,916