The cost of equipment purchased by Sweet, Inc., on June 1, 2017, is $107,690. It

Question

The cost of equipment purchased by Sweet, Inc., on June 1, 2017, is $107,690. It is estimated that the machine ll have a $6,050 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 50,820, and its total production is estimated at 635,250 units. During 2017, the machine was operated 7,260 hours and produced 66,550 units. During 2018, the machine was operated 6,655 hours and produced 58,080 units. Compute depreciation expense on the machine for the year ending December 31, 2017, and the year ending December 31, 2018, 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.) 2017 2018 (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) s

Explanation / Answer

Working:

2017 2018 a. Straight-line 8470.00 14520.00 b. Units-of-output 10648.00 9292.80 c. Working hours method 14520.00 13310.00 d. Sum-of-years digit method 4419.13 13257.39 e. Double declining method 17948.33 25640.48

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