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AP8-4B (Calculation of depreciation; three methods) On January 1, 2020, Rasmus Mining Ltd. purchased new...

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AP8-4B (Calculation of depreciation; three methods) On January 1, 2020, Rasmus Mining Ltd. purchased new mining equipment costing $386,000, which will be depreciated on the assumption that the equipment will be useful for four years and have a residual value of $28,000 when the company is finished using it. The estimated output from this equipment, in tonnes, is as follows: 2020 102,400: 2021 32,200; 2022 97,300; 2023 54.500. The company is now considering possible methods of depreciation for this asset. Required a. Calculate what the depreciation expense would be for each year of the asset'slife, if the company chooses: i. The straight-line method i. The units-of-production method iii. The double-diminishing- balance method b. Briefy discuss the critieria that a company should consider when seleceting a depreciation method

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