Class+Exercise+from+3-2-09

Class+Exercise+from+3-2-09 - used in the production of...

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ACCT 2101 CLASS EXERCISE DATE _____________ Topic: Depreciation Methods Name _____________________________ Section _______ The Carl Company acquired and placed into use equipment on January 2, 2006, at a cash cost of $1,870,000. Transportation charges amounted to $15,000, and installation and testing costs totaled $110,000. The equipment was estimated to have a useful life of nine years and a residual value of $75,000 at the end of its life. It was further estimated that the equipment would be
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Unformatted text preview: used in the production of 1,920,000 units of product during its life. During 2006, 426,000 units of product were produced. In 2007, 320,000 units of product were produced. In 2008, 523,000 units of product were produced. REQUIRED: Compute the depreciation to the nearest dollar for 2006, 2007, and 2008 using each of the following methods: (a) Straight-line method. (b) Units-of-production method. (c) Double-declining-balance method....
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