Question: Department computation: Blair Hoe Company purchased equipment for $424,000 on October 1, 2003. It is estimated that the equipment will have an useful life of 8 years and a salvage value of $24,000. Estimated production is 40,000 units. During 2003, Blair uses the equipment to produce 5000 units.
Instructions: Compare expenses under each of the following methods. Blair is on a calendar year basis ending December 31.
1. Straight line method for 2003.
2. Activity method for 2003.
3. SYD method for 2005
4. Double-declining balance method for 2004.