Question 1 Windsor Company purchased equipment for $258,335 on October 1, 2017.

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Question 1 Windsor Company purchased equipment for $258,335 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,S20. Estimated production is 40,300 units and estimated working hours are 20,100. During 2017, Windsor uses the equipment for 520 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Windsor 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 () Activity method (working hours) for 2017 (d) Sum-of-the-years'-digits method for 2019 (e) Double-declining-balance method for 2018 Question Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER SUBMIT ANSWER

Explanation / Answer

a) Straight line (258,335-14,520)/8 30476.88 depreciation expense for 3 months 7619 answer b) Actvity method (258,335-14520)/40300 6.05 per unit depreciation expense 6.05*1000 6050 answer c) Activity method(hours) (258335-14520)/20100 12.13 6308 answer d) Sum of years digit n(n+1)/2 36 depreciation expense = 243,815*8/36*3/12 13545 answe e) DDB 1/8*2 25.00% 258335*25%*3/12 16146 answer

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