Question
Sweet Company purchased equipment for $218,160on October 1, 2017. It is estimated that the equipment will have a useful life of8years and a salvage value
Sweet Company purchased equipment for $218,160on October 1, 2017. It is estimated that the equipment will have a useful life of8years and a salvage value of $12,120. Estimated production is40,800units and estimated working hours are20,200. During 2017, Sweet uses the equipment for520hours and the equipment produces1,000units.
Compute depreciation expense under each of the following methods. Sweet is on a calendar-year basis ending December 31.
(a)Straight-line method for 2017
(b)Activity method (units of output) for 2017
(c)Activity method (working hours) for 2017
(d)Sum-of-the-years'-digits method for 2019
(e)Double-declining-balance method for 2018
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