Question
Coronado Company purchased equipment for $216,240 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and
Coronado Company purchased equipment for $216,240 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,240. Estimated production is 40,000 units and estimated working hours are 20,300. During 2017, Coronado uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under the following methods. Coronado 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 0 decimal places, e.g. 45,892.)
Straight-line method for 2017
Sum-of-the-years'-digits method for 2019
Double-declining-balance method for 2018
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started