Can anyone help with a, b, and c? And show how you got your answer? Thank you! F

Question

Can anyone help with a, b, and c? And show how you got your answer? Thank you! Flounder Company purchased equipment for $270,000 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $15,000. Estimated production is 40,800 units and estimated working hours are 19,700. During 2017, Flounder uses the equipment for 520 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Flounder is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.) (a) Straight-line method for 2017 (b) Activity method (units of output) for 2017 (c) Activity method (working hours) for 2017 (d) Sum-of-the-years'-digits method for 2019 (e) Double-declining-balance method for 2018 5,468.75 6,375 6,693.75 . 63,281.25

Explanation / Answer

a) Depreciation per year under Straight line method = (270000-15000)/8 = $         31,875 Depreciation for 2017 (for 3 months) = 31875*3/12 = $           7,969 Answer b) Depreciation per unit = (270000-15000)/40800 = $              6.25 Depreciation for 2017 = 6.25*1000 = $           6,250 Answer c) Depreciation per working hour = (270000-15000)/19700 = $           12.94 Depreciation for 2017 = 520*12.94 = $           6,729 Answer

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.