The cost of equipment purchased by Bridgeport, Inc., on June 1, 2017, is $102,350. It is estimated that the machine will have a $5,750 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 48,300, and its total production is estimated at 603,750 units. During 2017, the machine was operated 6,900 hours and produced 63,250 units. During 2018, the machine was operated 6,325 hours and produced 55,200 units.
Compute depreciation expense on the machine for the year ending December 31, 2017, and the year ending December 31, 2018, using the following methods.(Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.)
| 2017 |
2018 |
| (a) |
Straight-line |
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|
| (b) |
Units-of-output |
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|
| (c) |
Working hours |
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|
| (d) |
Sum-of-the-years'-digits |
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| (e) |
Double-declining-balance (twice the straight-line rate) |
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