PART A:

PART B:

I need help with Part B. Please indicate your full solution and regarding "Reporting and Analyzing Inventory" in Accounting.

Blossom Company purchased equipment on March 31, 2021, at a cost of $272,000. Management is considering the merits of using the diminishing-balance or units-of-production method of depreciation instead of the straight-line method, which it currently uses for other equipment. The new equipment has an estimated residual value of $8,000 and an estimated useful life of either four years or 80,000 units. Demand for the products produced by the equipment is sporadic so the equipment will be used more in some years than in others. Assume the equipment produces the following number of units each year: 14,200 units in 2021; 20,400 units in 2022; 20,400 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Blossom has a December 31 year end. Units-of-production method: Year Units-of-Production 2021 2022 2023 2024 2025 14,200 20,400 20,400 20,000 5,000 Depreciation Expense 46,860 $ 67,320 67,320 66,000 16,500 Accumulated Depreciation 46,860 114,180 181,500 247,500 264,000 Carrying Amount 272,000 225,140 157,820 90,500 24,500 8,000 Double-diminishing-balance method: Year 2021 2022 2023 2024 2025 Opening Carrying Amount 272,000 $ 170,000 85,000 42,500 21,250 LA Depreciation Expense 102,000 85,000 42,500 21,250 13,250 LA Accumulated Depreciation 102,000 187,000 229,500 250,750 264,000 LA Carrying Amount 272,000 170,000 85,000 42,500 21,250 8,000 Prepare separate depreciation schedules for the life of the equipment using: (Round depreciation per unit to 2 decimal places, e.g. 5.28 and final answers to O decimal places, e.g. 5,275.) Straight-line method: Year 2021 $ 2022 2023 2024 2025 Depreciable Amount 264,000 $ 264,000 264,000 264,000 264,000 Depreciation Expense 49,500 $ 66,000 66,000 66,000 16,500 Accumulated Depreciation 49,500 115,500 181,500 247,500 264,000 $ Carrying Amount 272,000 222,500 156,500 90,500 24,500 8,000 (b) Your answer is partially correct. Compare the total depreciation expense and accumulated depreciation under each of the three methods over the life of the equipment. (Round answers to O decimal places, e.g. 5,275.) Total depreciation expense Accumulated depreciation LA $ Straight-Line 264,000 858,000 Units-of-Production 264,000 854,040 Double-Diminishing- Balance 264,000 1,033,250