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: 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. 1. Straight-line method < 2. Activity method based on hours worked. $ 3. Activity method based on units of output $ 4. Sum-of-the-years'-digits method 5. Double-declining-balance method. 6. 150%-declining-balance method $ $ 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 i 2. Activity method based on hours worked $ 3. Activity method.hased.on.units of output Previous Next 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 2. Activity method based on hours worked i 3. Activity method based on units of output 4. Sum-of-the-years'-digits method 5. Double-declining-balance method 6. 150%-declining-balance method $ $ 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- line, sum-of-the-years-digits, and declining-balance depreciation methods? If required, round your answers to the nearest dollar. 2019 Straight-line method $ Activity method based on hours worked Activity method based on units of output $1 $ $ $ Sum-of-the-years-digits method $ $ Double-declining-balance method $ $ 150%-declining-balance method $ $ 2020 Previous Next