Question

Sushi Corp. purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $32.400 The equipment has an estimated residual value of $2,100. The equipment is expected to process 276.000 payments over its three- year useful life. Per year expected payment transactions are 66.240. year 1 151800, year 2 and 57,960, year 3. Required: Complete a depreciation schedule for each of the alternative methods 1. Straight-line 2 Units-of-production Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete a depreciation schedule for Units-of-production method. (Do not round intermediate calculations.) Income Statement Balance Sheet Year Depreciation Cost Accumulated Depreciation Book Value 7 200 X 32.400 12.400 12,400 To 30,300
straight-line is already finished, just need units of production method.

Answer 1

Answer-

Sushi Corp.
Depreciation Schedule-Units of production method
YEAR	Depreciation $	Accumulated Depreciation $	Book Value $
1	7272	7272	25128
2	16665	23937	8463
3	6363	30300	2100

Explanation- Units of production method:-Annual depreciation expense per unit-

=Cost – salvage /Total payments

=($32400-$2100)/276000 payments transactions

=$0.10978260869 per payments transactions

Depreciation expense in year 1= Depreciation expense per unit* payments transactions

=$0.10978260869 per payments transactions*66240 transactions

= $7272

Depreciation expense in year 2= Depreciation expense per unit* payments transactions

=$0.10978260869 per payments transactions*151800 transactions

= $16665

Depreciation expense in year 3= Depreciation expense per unit* payments transactions

=$0.10978260869 per payments transactions*57960 transactions

= $6363