Question
Splish Company purchased equipment for $218,925 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and
Splish Company purchased equipment for $218,925 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,600. Estimated production is 39,300 units and estimated working hours are 19,900. During 2017, Splish uses the equipment for 520 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Splish is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)
(a) Straight-line method for 2017 $Entry field with correct answer
(b) Activity method (units of output) for 2017 $Entry field with correct answer
(c) Activity method (working hours) for 2017 $Entry field with correct answer
(d) Sum-of-the-years'-digits method for 2019 $Entry field with incorrect answer
(e) Double-declining-balance method for 2018 $Entry field with incorrect answer
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