Agazzi Company purchased equipment for $396,625 on October 1, 2012. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $31,040. Estimated production is 39,100 units and estimated working hours are 19,400. During 2012, Agazzi uses the equipment for 540 hours and the equipment produces 1,100 units.
Compute depreciation expense under each of the following methods. Agazzi is on a calendar-year basis ending December 31.
| (a) |
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Straight-line method for 2012 (Round answer to 0 decimal places, e.g. $45,892.) |
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$ |
| (b) |
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Activity method (units of output) for 2012 (Round rate per unit to 2 decimal places, e.g. $5.35 and final answer to 0 decimal places, e.g. $45,892.) |
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$ |
| (c) |
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Activity method (working hours) for 2012 (Round rate per hour to 2 decimal places, e.g. $5.35 and final answer to 0 decimal places, e.g. $45,892.) |
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$ |
| (d) |
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Sum-of-the-years'-digits method for 2014 (Round answer to 0 decimal places, e.g. $45,892.) |
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$ |
| (e) |
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Double-declining-balance method for 2013 (Round answer to 0 decimal places, e.g. $45,892.) |
|
$ |
Image text transcribed for accessibility Agazzi Company purchased equipment for $396,625 on October 1, 2012. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $31,040. Estimated production is 39,100 units and estimated working hours are 19,400. During 2012, Agazzi uses the equipment for 540 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Agazzi is on a calendar-year basis ending December 3