On January 1, 2020, SugarBear Company acquired equipment costing $150,000, which will be depreciated on the assumption that the equipment will be useful for five years and have a residual value of $12,000. The estimated output from this equipment is as follows: 2020-15.000 unit; 2021-24,000 units; 2022-30,000 units: 2023-28,000 units: 2024-18,000 units. The company is now considering possible methods of depreciation for this asset.
Required
Calculate what the depreciation expense would be for each year of the asser's life, if the company chooser
The straight-line method 1. The units-of-production method
li. The double-diminishing-balance atlad
D. Bnefly discuss the criteria that a company sad ce seer when selecting a depreciation method.
