Depreciation Methods Winsey Company purchased equipment on January 2, 2019, for $700,000. The equipment has the following characteristics: Estimated service life 20 years, 100,000 hours, 950,000 units of output Estimated residual value $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 $ 32,500 2. Activity method based on hours worked 3. Activity method based on units of output 4. Sum-of-the-years'-digits method 41,000 61,905 70,000 50,000 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 | 41,000 7 2. Activity method based on hours worked x 3. Activity method based on units of output 36,000 41,000 X 4. Sum-of-the-years'-digits method 5. Double-declining-balance method 72,000 x 6. 150%-declining-balance method 80,000 x 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 2020 Straight-line method $ 66,000 X $ 60,000 X Activity method based on hours worked Activity method based on units of output Sum-of-the-years'-digits method Double-declining-balance method 150%-declining-balance method