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On April 7, 2021, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years
On April 7, 2021, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2021 and 2022, 25,000 and 84,000 units, respectively, were produced. Hobart uses the half-year convention when recording partial year depreciation. a. Compute 2022 depreciation expense assuming Hobart Mfg. Co. uses the straight line method. Round to the nearest dollar. b. Compute 2022 depreciation expense assuming Hobart Mfg. Co uses the sum of the years' digits method. Round to the nearest dollar. c. Compute 2022 depreciation expense assuming Hobart Mig Co. uses the units of production method. Round to the nearest dollar
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