Reference no: EM133062358

Question - On January 1, 2019, Bramble Company, a small machine-tool manufacturer, acquired for $2,030,000 a piece of new industrial equipment. The new equipment had a useful life of 5 years, and the salvage value was estimated to be $80,000. Bramble estimates that the new equipment can produce 15,400 machine tools in its first year. It estimates that production will decline by 2,700 units per year over the remaining useful life of the equipment.

The following depreciation methods may be used: (1) straight-line, (2) double-declining-balance, (3) sum-of-the-years'-digits, and (4) units-of-output. For tax purposes, the class life is 7 years. Use the MACRS tables for computing depreciation.

Compute accumulated depreciation under the following methods: (1) straight-line, (2) double-declining-balance, (3) sum-of-the-years'-digits, and (4) units-of-output for the 3-year period ending December 31, 2021. Ignore present value, income tax, and deferred income tax considerations.