Agazzi Company purchased equipment for $304,000 on October 1, 2019. It is estimated that the equipment will

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Agazzi Company purchased equipment for $304,000 on October 1, 2019. It is estimated that the equipment will have a useful life of 8 years and a residual value of $16,000. Estimated production is 40,000 units, and estimated working hours are 20,000. During 2019, Agazzi uses the equipment for 525 hours, and the equipment produces 1,000 units.
Instructions
Compute depreciation expense under each of the following methods. Agazzi is on a calendar-year basis ending December 31.
a. Straight-line method for 2019.
b. Activity method (units of output) for 2019.
c. Activity method (working hours) for 2019.
d. Sum-of-the-years'-digits method for 2021.
e. Double-declining-balance method for 2020.
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Related Book For  book-img-for-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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