cardine company acquired and placed into use equipment on 2009 january 2 at a cash c 624488
Cardine Company acquired and placed into use equipment on 2009 January 2, at a cash cost of USD 935,000. Transportation charges amounted to USD 7,500, and installation and testing costs totaled USD 55,000. The equipment was estimated to have a useful life of nine years and a salvage value of USD 37,500 at the end of its life. It was further estimated that the equipment would be used in the production of 1,920,000 units of product during its life. During 2009, 426,000 units of product were produced.
Compute the depreciation to the nearest dollar for the year ended December 31, using:
a. Straight-line method.
b. Units-of-production method.
c. Double-declining-balance method (use a fraction rather than a percentage).