Reference no: EM132513528
Question - Marigold Company purchased equipment for $199,200 on October 1, 2020.
It is estimated that the equipment will have a useful life of 8 years salvage value of $12,000.
Estimated production is 36,000 units estimated working hours are 20,000
Marigold uses the equipment for 550 hours the equipment produces 1,100 units.
Compute depreciation expense under each of the following methods. Marigold is on a calendar-year basis ending December 31.
(a) Straight-line method for 2020
(b) Activity method (units of output) for 2020
(c) Activity method (working hours) for 2020
(d) Sum-of-the-years'-digits method for 2022
(e) Double-declining-balance method for 2021
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