Reference no: EM133085935
Question - On September 1, 2021, Regina Corporation purchases equipment for manufacturing laptop computers for $197,400.
The equipment has an estimated useful life of 6 years.
The equipment has an estimated residual value of $18,750.
The equipment is expected to produce 95,000 computers over its estimated useful life.
During the 2021 year, the equipment is used to manufacture 4,706 computers.
Regina Corporation has a December 31 year end.
Required - Calculate depreciation expense for the equipment for the 2021 and 2022 years, assuming that the double-declining balance method is used.
Calculate depreciation expense for the equipment for the 2021 year, assuming that the units-of-production method is used.
In accordance with generally accepted accounting principles, what factors should be considered in determining the method of depreciation to be used for a particular asset?