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The cost of equipment purchased by Whyspering, Inc., on June 1, 2025, is $100,800. It is estimated that the machine will have a $8,400 salvage
The cost of equipment purchased by Whyspering, Inc., on June 1, 2025, is $100,800. It is estimated that the machine will have a $8,400 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 46,200, and its total production is estimated at 577,500 units. During 2025, the machine was operated 6,720 hours and produced 61,600 units. During 2026, the was operated 6,160 hours and produced 53,800 units. | ||||||||||||
Compute depreciationexpense on the machine for the year ending December 31, 2025, and the year ending December 31, 2026, 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.) | ||||||||||||
2025 | 2026 | |||||||||||
a. | Straight-line | $ | $ | |||||||||
b. | Units-of-output | $ | $ | |||||||||
c. | Working hours | $ | $ | |||||||||
d. | Sum-of-the-years'-digits | $ | $ | |||||||||
e. | Double-declining-balance | $ | $ | |||||||||
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