Depreciation Methods Winsey Company purchased equipment on January 2, 2019, for $700,000. The equipment has the following characteristics: Estimated service life Estimated residual value 20 years, 100,000 hours, 950,000 units of output $50,000 During 2019 and 2020, the company used the machine for 4,500 and 5.500 hours, respectively, and produced 40,000 and 60,000 units, respectively, Required: I Compute depreciation expense for 2019 under each of the following methods: Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar. $ 32,500 29,250 5 1. Straight line method 2. Activity method based on hours worked 3. Activity method based on units of output 4. Sumofthe-years-digits method 5. Double-declining balance method $ 27,360 X $ 61,905 70,000 $ 6. 150%-declining-balance method 52,500 Compute depreciation expense for 2020 under each of the following methods: Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar. 1. Straight-line method $ 32,500 1 2. Activity method based on hours worked 3. Activity method based on units of output $ 35,750 $ 41,040 X 4. Sum-of-the-years-digits method $ 58,810 $ 63,000 5. Double-declining balance method 6. 150% declining balance method $ 48,563 7 7. Next Level If Winsey used a service life of 16 years, 80,000 hours, or 750,000 units of output, what would be the effect on depreciation expense under the straight- fine, sum-of-the-years-digits, and declining-balance depreciation methods? If required, round your answers to the nearest dollar, 2019 Straight-line method 40,625 $ 40,625 Activity method based on hours 2020 $ worked Activity method based on units of output Sum-of-the-years-digits method $ 76,471 s 71,691 Double-declining-balance method $ 87,500 $ 76,563 150% declining balance method $ 65,625 $ 59,473