Question
Use the following to answer the question(s) below: On October 1, 2021, Hobart. Co. purchased a drill press at a cost of $36,000. The drill
Use the following to answer the question(s) below: On October 1, 2021, Hobart. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2021 and 2022, 25,000 and 84,000 units, respectively, were produced. Required: SHOW ALL COMPUTATIONS a) Compute depreciation expense for 2021 and 2022, assuming the straight-line method is used. b) Compute depreciation expense for 2021 and 2022, assuming the double-declining-balance method is used. c) Compute depreciation expense for 2021 and 2022, assuming the sum-of-the-years'-digits method is used. d) Compute depreciation expense for 2021 and 2022, assuming the units-of-production method is used.
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