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INSTRUCTIONS:

PROVIDE sum of the year's digits assuming asset was purchased on October 1, 2020, Ignore information related to hours or working hours.

(Depreciation Computations)Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Bogues uses the equipment for 525 hours and the equipment produces 1,000 units.