Question
The cost of equipment purchased by Monty, Inc., on June 1, 2017, is $110,360. It is estimated that the machine will have a $6,200 salvage
The cost of equipment purchased by Monty, Inc., on June 1, 2017, is $110,360. It is estimated that the machine will have a $6,200 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 52,080, and its total production is estimated at 651,000 units. During 2017, the machine was operated 7,440 hours and produced 68,200 units. During 2018, the machine was operated 6,820 hours and produced 59,520 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 | $ | $ | |||
(b) | Units-of-output | $ | $ | |||
(c) | Working hours | $ | $ | |||
(d) | Sum-of-the-years'-digits | $ | $ | |||
(e) | Double-declining-balance (twice the straight-line rate) | $ | $ |
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