Reference no: EM131293884
Muggsy Bogues Company purchased equipment for $306,650 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $22,080. Estimated production is 39,800 units and estimated working hours are 20,500. During 2014, Bogues uses the equipment for 590 hours and the equipment produces 1,100 units.
Compute depreciation expense under each of the following methods. Bogues is on a calendar-year basis ending December 31.
(a) Straight-line method for 2014 (Round answer to 0 decimal places, e.g. 45,892.) $
(b) Activity method (units of output) for 2014 (Round rate per unit to 2 decimal places, e.g. 5.35 and final answer to 0 decimal places, e.g. 45,892.) $
(c) Activity method (working hours) for 2014 (Round rate per hour to 2 decimal places, e.g. 5.35 and final answer to 0 decimal places, e.g. 45,892.) $
(d) Sum-of-the-years'-digits method for 2016 (Round answer to 0 decimal places, e.g. 45,892.) $
(e) Double-declining-balance method for 2015 (Round answer to 0 decimal places, e.g. 45,892.) $
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