In: Accounting
The cost of equipment purchased by Waterway, Inc., on June 1,
2020, is $102,900. It is estimated that the machine will have a
$10,500 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 616,000 units.
During 2020, the machine was operated 7,200 hours and produced
66,000 units. During 2021, the machine was operated 6,600 hours and
produced 57,600 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 | $ | $ | |||
(b) | Units-of-output | $ | $ | |||
(c) | Working hours | $ | $ | |||
(d) | Sum-of-the-years'-digits | $ | $ | |||
(e) | Double-declining-balance (twice the straight-line rate) | $ | $ |