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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 and a salvage value of $12,000. Estimated production is 36,000 units and estimated working hours are 20,000. During 2020, Marigold uses the equipment for 550 hours and 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.-
Straight-line method for 2020
Activity method (units of output) for 2020
Activity method (working hours) for 2020
Sum-of-the-years'-digits method for 2022
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