At the Beginning of 2009,your Company Buys a $30,000 Piece

Essay

At the beginning of 2009,your company buys a $30,000 piece of equipment that it expects to use for 4 years.The company expects to produce a total of 200,000 units.The equipment has an estimated residual value of $2,000.
a.Find the amortizable cost.
b.Find the amortization expense per year under the straight-line method.
c.Prepare an amortization schedule under the straight-line method.
d.Find the amortization rate per unit under the units-of-production method.
e.Compare the annual amortization expense using both methods assuming constant annual production.
f.Prepare an amortization schedule under the units-of-production method if 44,000 units are produced in year one,53,000 units in year two,51,000 units in year three,and 52,000 units in year four.