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On January 1, 2019, Windsor Company, a medium-sized tool and die manufacturer, acquired for $1,840,000 a piece of new industrial equipment. The new equipment had
On January 1, 2019, Windsor Company, a medium-sized tool and die manufacturer, acquired for $1,840,000 a piece of new industrial equipment. The new equipment had a useful life of 5 years, and the salvage value was estimated to $115,000. Windsor estimates that the new equipment can produce 34,000 units in its first year. It estimates that production will decline by 2,000 units per year over the remaining useful life of the equipment. Actual production for 2019-2021 equals management's estimates. The following depreciation methods may be used: (1) straight-line; (2) double-declining-balance; (3) sum-of-the-years'-digits; and (4) units-of-output. For tax purposes, the class life is 7 years. Use the MACRS tables for computing depreciation. Compute accumulated depreciation under the following methods: (1) straight-line, (2) double-declining-balance, (3) sum-of-theyears'-digits, and (4) units-of-output for the 3-year period ending December 31, 2021. Ignore present value, income tax, and deferred income tax considerations. (Round cost per unit to 2 decimal places, e.g. 25.12. Round other intermediate calculations to 6 decimal places, e.g. 1.524687 amd final answers to 0 decimal places, e.g. 5,125.)
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