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Question - Swifty Company purchased equipment for $251,930 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,160. Estimated production is 40,300 units and estimated working hours are 20,100. During 2017, Swifty uses the equipment for 530 hours and the equipment produces 1,100 units.
Required - Compute depreciation expense under each of the following methods. Swifty is on a calendar-year basis ending December 31.
(a) Straight-line method for 2017.
(b) Activity method (units of output) for 2017.
(c) Activity method (working hours) for 2017.
(d) Sum-of-the-years'-digits method for 2019.
(e) Double-declining-balance method for 2018.
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