Question: Question 27 (5 points) Use the following information for items 26, 27 and 28. Golden Rams Company acquired equipment on January 1, 2020 for $43,500.
Question 27 (5 points) Use the following information for items 26, 27 and 28. Golden Rams Company acquired equipment on January 1, 2020 for $43,500. The equipment has an estimated useful life of 10 years or 385,000 unit of product with a salvage value of $5,000. During 2020 the equipment produced 25,000 units and during 2021 the equipment produced 32,500 units. What is the "Depreciation Expense" and "Accumulated Depreciation for 2020 and 2021 under the activity (units-of-production) method? 2020--Depreciation Expense, $2,500; Accumulated Depreciation, $2,500 2021--Depreciation Expense, $2,500; Accumulated Depreciation, $2,500 2020--Depreciation Expense, $2,500; Accumulated Depreciation, $2,500 2021--Depreciation Expense, $3,250: Accumulated Depreciation, $5,750 2020--Depreciation Expense, $2,750; Accumulated Depreciation, $2,750 2021--Depreciation Expense, $3,575; Accumulated Depreciation, $3,575 2020-Depreciation Expense, $2,750: Accumulated Depreciation, $2,750 2021--Depreciation Expense, $3,575; Accumulated Depreciation, $6,325
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