Question - Agazzi Company purchased equipment for $380,000 on October 1, 2010. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $16,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2010, Agazzi uses the equipment for 525 hours and the equipment produces 1,000 units.
Compute depreciation expense under each of the following methods. Agazzi is on a calendar-year basis ending December 31. (Round all calculations and final answers to 0 decimal places, i.e. 25,250.)
(a) Straight-line method for 2010.
(b) Activity method (units of output) for 2010. (Round cost per unit to 2 decimal places, i.e. 12.25 and and final answer to 0 decimal places, i.e. 25,240.)
(c) Activity method (working hours) for 2010. (Round cost per hour to 2 decimal places, i.e. 12.25 and and final answer to 0 decimal places, i.e. 25,240.)
(d) Sum-of-the-years'-digits method for 2012. (Do not round intermediate computations and round final answer to 0 decimal places, i.e. 25,240.)
(e) Double-declining balance method for 2011.