Question
The cost of equipment purchased by Oriole, Inc., on April 1, 2020, is $113,000. It is estimated that the machine will have a $5,000 salvage
The cost of equipment purchased by Oriole, Inc., on April 1, 2020, is $113,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 6 years; its total working hours are estimated at 21,600; and its total production is estimated at 432,000 units. During 2020, the machine was operated 3,500 hours and produced 41,000 units. During 2021, the machine was operated 4,600 hours and produced 54,000 units. Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021, 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.)
2020 | 2021 | |||||
---|---|---|---|---|---|---|
(a) | Straight-line | $enter a dollar amount | $enter a dollar amount | |||
(b) | Units-of-output | $enter a dollar amount | $enter a dollar amount | |||
(c) | Working hours | $enter a dollar amount | $enter a dollar amount | |||
(d) | Sum-of-the-years'-digits | $enter a dollar amount | $enter a dollar amount | |||
(e) | Double-declining-balance (twice the straight-line rate) | $enter a dollar amount | $enter a dollar amount |
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