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The cost of equipment purchased by Bonita, Inc., on June 1, 2017, is $105,020. It is estimated that the machine will have a $5,900 salvage
The cost of equipment purchased by Bonita, Inc., on June 1, 2017, is $105,020. It is estimated that the machine will have a $5,900 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 49,560, and its total production is estimated at 619,500 units. During 2017, the machine was operated 7,080 hours and produced 64,900 units. During 2018, the machine was operated 6,490 hours and produced 56,640 units. Compute depreciation expense on the machine for the year ending December 31, 2017, and the year ending December 31, 2018, 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.) 2017 2018 (a) Straight-line 8260 14160 (b) Units-of-output 10,384 9062 (c) Working hours 14160 12980 (d) Sum-of-the-years'-digits 14 455 22715 (e) Double-declining-balance (twice the straight-line rate)
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