Question
Problem 11-02 The cost of equipment purchased by Splish, Inc., on June 1, 2020, is $107,100. It is estimated that the machine will have a
Problem 11-02
The cost of equipment purchased by Splish, Inc., on June 1, 2020, is $107,100. It is estimated that the machine will have a $6,300salvage value at the end of its service life. Its service life is estimated at7years, its total working hours are estimated at50,400, and its total production is estimated at672,000units. During 2020, the machine was operated7,500hours and produced68,700units. During 2021, the machine was operated6,870hours and produced60,000units.
Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021, using the following methods.(Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.)
2020
2021
(a)Straight-line$
$
(b)Units-of-output$
$
(c)Working hours$
$
(d)Sum-of-the-years'-digits$
$
(e)Double-declining-balance(twice the straight-line rate)$
$
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