Buff Company purchased equipment for $500,000 cash on July 1, 2006. The estimated life is 5 years or 1,000,000 units; salvage value is estimated at $50,000. Actual activity was 180,000 units in 2004 and 200,000 units in 2006.
Instructions:
Compute the annual depreciation expense for 2006 and 2007, and book value at December 31, 2007, under the straight-line method.
2006 depreciation = $_______________.
2007 depreciation = $_______________.
12/31/07 book value = $_______________.