M Homework 9 E - C O ezto.mheducation.com/hm.tpx « Question 9 9. 12.00 points At

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M Homework 9 E - C O ezto.mheducation.com/hm.tpx « Question 9 9. 12.00 points At the beginning of 2015, your company buys a $30,000 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 46,000 units in 2015, 52,000 units in 2016, 48,000 units in 2017, and 54,000 units in 2018. Required: a. Determine the depreciable cost. Depreciable Cost b. Calculate the depreciation expense per year under the straight-line method Depreciation Expense per year c. Use the straight-line method to prepare a depreciation schedule Year Depreciation Accumulated Net Book Expense Depreciation Acquisition cost 2015 2016 d. Cuiculate the deprecation rate per unit under the units-of-production method (Round your answer to 2 OType here to search o e a NB Esc F1 F2F3 F4 F5F6F7 N @ ! ! # m UT

Explanation / Answer

a) Depreciable cost = (30000-4000) = 26000

b) Striaght line dep = (Original cost-salvage value)/use ful life

= (30000-4000)/4

Straight line dep = 6500

c) Depreciation schedule :

d) depreciation cost per unit = 26000/200000 = 0.13 per unit

e) depreciation schedule - unit of production method :

Year depreciation expenses Accumlated dep Net Book value at acquisition 30000 2015 6500 6500 23500 2016 6500 13000 17000 2017 6500 19500 10500 2018 6500 26000 4000

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