Problem 11-12 On January 1, 2016, Whispering Company, a small machine-tool manufacturer, acquired for $2,590,000 a piece of new industrial equipment. The new equipment had a useful life of 5 years, and the salvage value was estimated to be $45,000. Whispering estimates that the new equipment can produce 15,200 machine tools in its first year. It estimates that production will decline by 1,690 units per year over the remaining useful life of the equipment 5 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 MACRS Depreciation Rates by Class of Property Recovery 3-year 7-year (200% DB) 14.29 24.49 17.49 (20096 DB) 33.33 44.45 (200% DB) (200% DB) 10.00 18.00 (150% DB) 5.00 9.50 8.55 (150% DB) 3.750 7.219 6.677 32.00 19.20 11.52 11.52 5.76 7 11.52 9.22 7.37 6.55 6.55 6.56 6.55 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 8.93 8.92 8.93 6.93 6.23 5.90 5.90 5.90 5.90 5.91 2231 Compute accumulated depreciation under the following methods: (1) straight-line, (2) double-declining-balance, (3) sum-of-the-years'-digits, and (4) units of-output for the 3-year period ending December 31, 2018. Ignore present value, income tax, and deferred income tax considerations. (Round cost per unit to 2 decimal palces, 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.) Accumulated Depreciation Methods 2016 2017 2018 1) Straight-line 509000 1018000 1527000 (2) Double-declining-balance 1657600 2030560 10180 0 (3) Sum-of-the-years'-digits 1527000 2036000 15270 4) Units-of-output 1236253 1745222 Compute accumulated depreciation by using MACRS and optional straight-line method for the 3-year period ending December 31, 2018. Ignore present value considerations. Accumulated Depreciation Methods 2016 2017 2018 MACRS 370111 1004402 1457393 Optional straight-line method 727142 363571 1090713