Scott Company purchased equipment for $350,000 on 2020. It is estimated that the equipment will have a useful life of 10 years and a salvage value of $60,000. Estimated production is 25,000 units and estimated working hours 15,000. Scott uses the equipment for 800 hours and 3,700 hours, and the equipment produces 2,500 units and 7,000 units during 2020 and 2021, respectively. Instructions: A. Compute depreciation expense under each of the following methods for 2020 and 2021 assuming Scott's year end is December 31. A. Straight-line method. B. Activity method (units of output). C. Activity method (working hours). D. Sum-of-the-years'-digits method. E. Double-declining balance method. B. Compute the book value of the equipment at December 31, 2021 for each method A. - E.

Scott Company purchased equipment for $350,000 on 2020. It is estimated that the equipment will have a useful life of 10 years and a salvage value of $60,000. Estimated production is 25,000 units and estimated working hours 15,000. Scott uses the equipment for 800 hours and 3,700 hours, and the equipment produces 2,500 units and 7,000 units during 2020 and 2021, respectively. Instructions: A. Compute depreciation expense under each of the following methods for 2020 and 2021 assuming Scott's year end is December 31. A. Straight-line method. B. Activity method (units of output). C. Activity method (working hours). D. Sum-of-the-years'-digits method. E. Double-declining balance method. B. Compute the book value of the equipment at December 31, 2021 for each method A. - E.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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