Estimating Depreciation Expense and Book Value
Equipment costing $29,000, with a scrap value of $5,000 was purchased on January 1, by Global Communications, Inc. The estimated useful life of the equipment was 4 years and it was expected to generate 80,000 finished units of production.
Units actually produced were 14,000 in Year 1 and 20,000 in Year 2.
Required
Compute the following.
Straight-line
Double-declining-balance
Units-of-production