Rawalpindi Waste Management purchased new equipment on January 2, 1993, at a cost of 270,000. The equipment had an estimated useful life of 5 years, with an estimated residual value of 24,000. Instructions: Compute the annual depreciation expense throughout the 5-year life of this equipment under the three-depreciation method listed below. 

a) Straight Line Method 

b) Unit of Output Method 

c) MACRS (Modified Accelerated Cost Recovery System. 

Rawalpindi Waste Management purchased new equipment on January 2, 1993, at a cost of 270,000. The equipment had an estimated useful life of 5 years, with an estimated residual value of 24,000. 

Instructions: Compute the annual depreciation expense throughout the 5-year life of this equipment under the three-depreciation method listed below. a) Straight Line Method b) Unit of Output Method c) MACRS (Modified Accelerated Cost Recovery System.

Answer rating: 100% (QA)

a DEPRECIATION UNDER STRAIGHT LINE METHOD 1 Cost of Equipment 270000 2 Life of Equipment 5 Years 3 R... View the full answer