Compute the depreciable cost

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At the beginning of 2013, your company buys a $28,800 piece of equipment that it expects to use for 4 years. The company expects to produce a total of 200,000 units. The equipment has an estimated residual value of $2,000.

Question a. Compute the depreciable cost.

Question b. Compute the depreciation expense per year under the straight-line method.

Question c. Compute the depreciation rate per unit under the units-of-production method. (Round your answer to 2 decimal places.)

Question d. Compute the depreciation expense for Year 1 under the double-declining method. (Round your answer to 2 decimal places.)

 

Reference no: EM132493762

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