Redeker company purchased equipment on january 1, 2011 for $80000. it is estimated that the equipment will have a $5000 salvage value at the end of the end of its 5-year useful life. it is also estimated that the equipment will produce 100000 units over its 5-year life. 16000 units of the product for 2011, 24000 units in 2012, 22000 units in 2013, 20000units in 2014 and 18000 units in 2015.
INSTRUCTIONS:
Prepare a depreciation schedule that shows the anual depreciation expense on the machine for its 5-year life. Use straight-line method, then units of production method.