On January 1, 2011, Courier Inc. purchased new equipment that had a total cost (

Question

On January 1, 2011, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $89,000. The equipment is expected to have a useful life of four years or produce a total of 129,000 units. At the end of its life, the equipment is expected to have a residual value of $5,700. The equipment is expected to produce 23,220 units in 2011; 36,120 units in 2012; and 37,410 units in 2013; and 32,250 units in 2014. Courier Inc.'s fiscal year ends on December 31. In the table below, fill in the missing depreciation expense and accumulated depreciation amounts using the straight-line, double- declining-balance, and units-of-production methods. Do not round your intermediate calculation. When required, round your answers to the nearest dollar.

Explanation / Answer

Answer:

Cost $89000 Depreciation expense Accumulated depreciation Year Straight-line method Double-Declining Balance method Unit of production mathod Straight-line method Double-Declining Balance method Unit of production mathod 2011 20825 44500 14994 20825 44500 14994 2012 20825 22250 23324 41650 66750 38318 2013 20825 11125 24157 62475 77875 62475 2014 20825 5425 20825 83300 83300 83300

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