I. Denver Co. purchased equipment for $225,000 on 12/1/x1. It is estimated that the equipment will have a useful life of 7 years and a residual value of $5,000. Estimated production is 30,000 units and estimated working hours are 25,000. During the month of December in 20x1, Denver used the equipment for 515 hours and the equipment produced 1,200 units.

Compute depreciation expense under each of the following methods. Denver is on a calendar-year basis ending December 31, and is using the half-month convention.

No Credit if no calculation is shown.

1. Sum-of-the-years' method for 20x2 (1/1/x2 ~ 12/31/x2)
2. Double-declining balance method for 20x3 (1/1/x3 ~ 12/31/x3)
3. Activity method (units of output) for 20x1 (12/1/x1 ~ 12/31/x1)
4. Straight-line for 20x1(12/1/x1 ~ 12/31/x1)