View Policies Show Attempt History Current Attempt in Progress Ivanhoe Company purchased equipment on March 31, 2021, at a cost of $264,000. 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: 14,600 units in 2021; 20,600 units in 2022; 19.800 units in 2023; 20,000 units in 2024; and 5,000 units in 2025. Ivanhoe has a December 31 year end. raddessment-player/index.html?launchid-4e47cb26-3b12-4b69-9279-b5ea93e62fb8#/question/0 Double-diminishing-balance method: Opening Carrying Year Amount 2021 $ 264000 2022 214500 S Depreciation Expense Accumulated Depreciation Carrying Amount A 264000 49500 49500 214500 53625 103125 160875 2023 160875 40219 143344 120656 2024 120656 30164 173508 90492 2025 90492 22623 196131 67869 Units-of-production method