Depreciation
Methods
Winsey Company
purchased equipment on January 2, 2016, for $700,000. The equipment
has the following characteristics:
Estimated service life
16 years, 80,000 hours, or 750,000 units of output
Estimated residual value
$50,000
During 2016 and 2017,
the company used the machine for 4,500 and 5,500 hours,
respectively, and produced 40,000 and 60,000 units,
respectively.
2016
2017
Straight-line method
$
$
Activity method (hours worked)
$
$
Activity method (units of output)
$
$
Sum-of-the-years'-digits method
$
$
Double-declining-balance...