On January 1, Year 1, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $85,000. The equipment is expected to have a useful life of four years or to produce a total of 125,000 units. At the end of its useful life, the equipment is expected to have a residual value of $5,000. The equipment is expected to produce 28,750 units in Year 1; 32,500 units in Year 2; 33,750 units in Year 3; and 30,000 units in Year 4. Courier Inc.'s fiscal year ends December 31.

In the table below, fill in the missing depreciation expense and accumulated depreciation amounts using the straight-line, double-declining-balance, and production methods.

Cost $85,000		Depreciation Expense									Accumulated Depreciation
Year		Straight-Line Method			Double-Declining-Balance Method			Production Method			Straight-Line Method			Double-Declining-Balance Method			Production Method
Year 1		$			$42,500			$18,400			$20,000			$42,500			$18,400
Year 2		$20,000			$			$20,800			$			$63,750			$39,200
Year 3		$20,000			$10,625			$			$60,000			$			$60,800
Year 4		$20,000			$5,625			$19,200			$80,000			$80,000			$

Answer rating: 100% (QA)

Straight line depreciation Method Boup So young 20 2 2000 4 850 Residival value 5000 Debre... View the full answer