A10-8 Depreciation Computation:Mace Company acquired equipment that cost $36,000, which will be depreciated on the assumption that the equipment will last six years and have a $2,400 residual value. Component parts are not significant and need not be recognized and depreciated separately. Several possible methods of depreciation are under consideration.Required 1. Prepare a schedule that shows annual depreciation expense for the first two years, assuming the following (show computations and round to the nearest dollar):1. Declining-balance method, using a rate of 30%.2. Productive-output method. Estimated output is a total of 210,000 units, of which 24,000 will be produced the first year; 36,000 in each of the next two years; 30,000 the fourth year; and 42,000 the fifth and sixth years.3. Straight-line method.
A10-8 Depreciation Computation:
Mace Company acquired equipment that cost $36,000, which will be
Required
1. Prepare a schedule that shows annual depreciation expense for the first two years, assuming the following (show computations and round to the nearest dollar):
1. Declining-balance method, using a rate of 30%.
2. Productive-output method. Estimated output is a total of 210,000 units, of which 24,000 will be produced the first year; 36,000 in each of the next two years; 30,000 the fourth year; and 42,000 the fifth and sixth years.
3. Straight-line method.
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