Naomi Manufacturing Company purchased a piece of equipment for $1,520,000 at the beginning of 2019. The equipment has an estimated useful life of four years and an estimated residual value of $150,000. The equipment should produce 20,000 units. It produced in each year: 4,000 in 2019; 8,000 in 2020; 5,000 in 2021; and 3,000 in 2022.

Required:

Required:

1. Compute the annual depreciation expense, accumulated depreciation and carrying value for the equipment for each year assuming the following depreciation methods (a) straight-line, (b) production, and (c) double-declining balance.
2. Prepare the adjusting entry that would be made in 2020 to record the depreciation calculated under the double-declining balance method.
3. Show the balance sheet presentation for the equipment after the adjusting entry in 2020 using the double-declining balance method.

Answer rating: 100% (QA)

a Straight line Method Depreciation Cost Estimated Residual ValueEstimated useful life Cost 15200000... View the full answer