At the beginning of 2020, your company buys a $30,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 6,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000 units in 2020, 50,000 units in 2021, 52,000 units in 2022, and 51,000 units in 2023.Required:Determine the depreciable cost.Calculate the depreciation expense per year under the straight-line method.Use the straight-line method to prepare a depreciation schedule.Calculate the depreciation rate per unit under the units-of-production method.Use the units-of-production method to prepare a depreciation schedule.

Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts for you. To get the remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.”. Introduction: The depreciated cost of a fixed asset is its value less the total accumulated depreciation that has been recorded against it. In a broader economic context, the term "depreciated cost" refers to the total amount of capital that is "used up" in a given period of time, such as a fiscal year.Answer 1. Depreciable cost = $ 26, 400 (Working) Working: A Cost $30,400 B Residual Value $6,000 C =A-B Depreciable base $24,400 D Life [in years] 4 E =C/D Annual SLM depreciation $6,100 Answer 2. Depreciation expense per year under the Straight line is $ 6,100 (Working above) Answer 3. Year Book Value Depreciation expense Ending Book Value Accumulated Depreciation 2020 $30,400 $6,100 $24,300 $6,100 2021 $24,300 $6,100 $18,200 $12,200 2022 $18,200 $6,100 $12,100 $18,300 2023 $12,100 $6,100 $6,000 $24,400

Answered: At the beginning of 2020, your company…

FINANCIAL ACCOUNTING

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At the beginning of 2020, your company buys a $30,400 piece of equipment that it expects to use for 4 years. The equipment has an estimated residual value of 6,000. The company expects to produce a total of 200,000 units. Actual production is as follows: 47,000 units in 2020, 50,000 units in 2021, 52,000 units in 2022, and 51,000 units in 2023.

Required:

Determine the depreciable cost.
Calculate the depreciation expense per year under the straight-line method.
Use the straight-line method to prepare a depreciation schedule.
Calculate the depreciation rate per unit under the units-of-production method.
Use the units-of-production method to prepare a depreciation schedule.

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