Determine the depreciable cost

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Reference no: EM131205567

At the beginning of 2015, your company buys a $33,600 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 4,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 46,000 units in 2015, 49,000 units in 2016, 45,000 units in 2017, and 60,000 units in 2018. Required: a. Determine the depreciable cost. b. Calculate the depreciation expense per year under the straight-line method. c. Use the straight-line method to prepare a depreciation schedule. d. Calculate the depreciation rate per unit under the units-of-production method. (Round your answer to 2 decimal places.) e. Use the units-of-production method to prepare a depreciation schedule. (Do not round your Depreciation rate per unit.)

Reference no: EM131205567

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