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Problem 1 (31.5 points) Comfort Corporation is a company that manufactures and sells chairs....

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Accounting

Problem 1 (31.5 points)

Comfort Corporation is a company that manufactures and sells chairs. On 1/1/21, the company purchases a piece of manufacturing equipment for $6,200,000 cash. The expected residual value is $400,000 and the useful life is 5 years. The company expects to produce 5,000,000 chairs with the equipment 1,200,000 chairs in 2021; 1,400,000 chairs in 2022; 1,000,000 chairs in 2023; and 600,000 chairs 2024; and 800,000 chairs in 2025.

SHOW YOUR WORK! Round per unit to the nearest cent.

Assume that Comfort Corporation uses the Straight-Line method of depreciation.

2021

2022

2023

2024

2025

Depreciation Expense for the year

Accumulated Depreciation at year-end

PPE, Net on year-end Balance Sheet

Assume that Comfort Corporation uses the Units-of-Activity method of depreciation.

2021

2022

2023

2024

2025

Depreciation Expense for the year

Accumulated Depreciation at year-end

PPE, Net on year-end Balance Sheet

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