Pina Colada Corp. purchased equipment on January 1, 2021 for $148,500. It is estimated that the...

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Pina Colada Corp. purchased equipment on January 1, 2021 for$148,500. It is estimated that the equipment will have a $8,250salvage value at the end of its 5-year useful life. It is alsoestimated that the equipment will produce 165,000 units over its5-year life.

Answer the following independent questions.
Compute the amount of depreciation expense for the year endedDecember 31, 2021 using the straight-line method ofdepreciation.
Straight-line method $enter the depreciation expense under the straight-line methodfor the year ended December 31, 2016 in dollars per year


Question Part Score
--/3
If 16,000 units of product are produced in 2021 and 24,000 unitsare produced in 2022, what is the book value of the equipment atDecember 31, 2022? The company uses the units-of-activitydepreciation method.
Book value at December 31, 2022 $enter the book value of the equipment at December 31, 2017 indollars


Question Part Score
--/5
If the company uses the double-declining-balance method ofdepreciation, what is the balance of the AccumulatedDepreciation—Equipment account at December 31, 2023?
Accumulated Depreciation—Equipment enter the balance of the Accumulated Depreciation—Equipmentaccount at December 31, 2018 in dollars

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Based on the information available in the question we can answer as follows Requirement 1 Depreciation expense under Straight Line depreciation method Cost of the asset Salvage valueEstimated life of the asset Depreciation See Answer

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Pina Colada Corp. purchased equipment on January 1, 2021 for$148,500. It is estimated that the equipment will have a $8,250salvage value at the end of its 5-year useful life. It is alsoestimated that the equipment will produce 165,000 units over its5-year life.Answer the following independent questions.Compute the amount of depreciation expense for the year endedDecember 31, 2021 using the straight-line method ofdepreciation.Straight-line method$enter the depreciation expense under the straight-line methodfor the year ended December 31, 2016 in dollarsper year Question Part Score--/3If 16,000 units of product are produced in 2021 and 24,000 unitsare produced in 2022, what is the book value of the equipment atDecember 31, 2022? The company uses the units-of-activitydepreciation method.Book value at December 31, 2022$enter the book value of the equipment at December 31, 2017 indollars Question Part Score--/5If the company uses the double-declining-balance method ofdepreciation, what is the balance of the AccumulatedDepreciation—Equipment account at December 31, 2023?Accumulated Depreciation—Equipmententer the balance of the Accumulated Depreciation—Equipmentaccount at December 31, 2018 in dollars