Chapter 17 Depreciation

Question 1

Straight line method
Deprecation expense

Answer 1

Cost-residual value/estimated useful life in years

Question 2

Units of production method
Depreciation expense per unit=

Answer 2

Cost-residual value/total estimated units produced

Question 3

Declining-balance method
Depreciation expense

Answer 3

Book value at beginning of year*(depreciation rate)