Answer:
Straight line depreciation expense = $9,775
Double declining method = $23,000
unit of production method = $6,256
Explanation:
Depreciation expense is used to expense the cost of asset.
Depreciation expense using the straight line depreciation method = (cost of the equipment - Salvage value) / useful life
($46,000 - $6,900) / 4 = $9,775
The depreciation expense in 2021 is $9,775.
Depreciation expense using the double declining method = acceleration factor × net book value
Acceleration factor = 2×(1/useful life)
2(1/4) = 0.5
= 0.5 × $46, 000 = $23,000
Depreciation expense using the double declining method = $23,000
Depreciation expense using the unit of production method =Total use in a given period × [( Cost - Salvage value)/ total productive capacity]
($46,000 - $6,900) /10,000 = $3.91 × 1600 =$6,256
Depreciation expense using the unit of production method = $6,256
I hope my answer helps you.
