Blue Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment...

Blue Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Blue uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Blue is on a calendar-year basis ending December 31.

(a)	Straight-line method for 2020	$enter a dollar amount
(b)	Activity method (units of output) for 2020	$enter a dollar amount
(c)	Activity method (working hours) for 2020	$enter a dollar amount
(d)	Sum-of-the-years'-digits method for 2022	$enter a dollar amount
(e)	Double-declining-balance method for 2021

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Expert Solution

ekkarill92 answered 1 year ago

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