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Blossom Company purchased equipment for $303,200 on October 1, 2025. It is estimated that the equipment will have a useful life of 8 years and
Blossom Company purchased equipment for $303,200 on October 1, 2025. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $15,200. Estimated production is 45,000 units and estimated working hours are 20,000. During 2025, Blossom uses the equipment for 530 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Blossom is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to O decimal places, e.g. 45,892.) (a) Straight-line method for 2025 (b) Activity method (units of output) for 2025 (c) (d) (e) Activity method (working hours) for 2025 Sum-of-the-years'-digits method for 2027 Double-declining-balance method for 2026 $ $ $ $ $
Blossom Company purchased equipment for $303,200 on October 1, 2025. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $15,200. Estimated production is 45,000 units and estimated working hours are 20,000. During 2025, Blossom uses the equipment for 530 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Blossom is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, eg. 5.35 and final answers to O decimal places, e.g. 45,892.) (a) Straight-line method for 2025 (b) Activity method (units of output) for 2025 $ (c) Activity method (working hours) for 2025 (d) Sum-of-the-years-digits method for 2027 (e) Double-declining-balance method for 2026
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