Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sweet Company purchased equipment for $216,240 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years

 

Sweet 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, Sweet uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Sweet 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.) (a) Straight-line method for 2017 6375 (b) Activity method (units of output) for 2017 5554 24 (c) Activity method (working hours) for 2017 5326 (d) Sum-of-the-years'-digits method for 2019 (e) Double-declining-balance method for 2018 51000

Step by Step Solution

3.49 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

ANS St9laight Line method fogr 2017 slyroight Line method EQUi... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions