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Depreciation Computation and Terminology. On January 1, 2009, AWRY Corp. purchased equipment costing $45,000. It has a useful life of 3 years or 30,000 units and a residual value of $3,000. The equipment produced 12,000 units in 2009, 11,000 units in 2010 and 7,000 units in 2011.
a. Using straight-line depreciation, what is the balance of accumulated depreciation at December 31,2010?
b. Using units-of-production, what is the depreciation expense for 2009?
c. Using double declining balance, what is the book value at December 31, 2011?
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