Fleet Rentals Purchased Equipment with a Cost of $200,000 at the Beginning

Essay

Fleet Rentals purchased equipment with a cost of $200,000 at the beginning of 2012.The equipment has an estimated life of 10 years or 100,000 units of product.The estimated residual value is $20,000.During 2012,11,000 units of product were produced with this machinery.Determine the following:
A) Amount of total accumulated depreciation at December 31, 2012, using units-of-prochiction depreciation
B) Book value at the end of 2012 using straight-line depreciation
C) Whywould the company choose units-of-prochuction depreciation instead of straight-line?