Please show all the calculation.

Problem 9-4A a-b (Part Level Submission)

Pharoah Company purchased equipment on March 27, 2018, at a cost of $312,000. Management is contemplating 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 2018; 20,000 units in 2019; 20,800 units in 2020; 20,000 units in 2021; and 5,000 units in 2022. Pharoah has a December year end.

Year

Units-of-Production

Depreciation Expense

Accumulated Depreciation

Carrying Amount

Straight-line method: Double-diminishing-balance method: Units-of-production method:

Q2

Pharoah Enterprises purchased equipment on March 15, 2018, for $81,910. The company also paid the following amounts: $470 for freight charges; $219 for insurance while the equipment was in transit; $1,707 for a one-year insurance policy; $2,212 to train employees to use the new equipment; and $3,041 for testing and installation. The equipment was ready for use on April 1, but the company did not start using it until May 1. Pharoah has estimated the equipment will have a 10-year useful life with no residual value. It expects to consume the equipments future economic benefits evenly over the useful life. The company has a December 31 year end.

Cost of the equipment =