Tamarisk Company purchased equipment for $228,000 on October 1, 2025. 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 2025, Tamarisk uses the equipment for 550 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Tamarisk is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to O decimal places, e.g. 45,892.) (a) (b) (c) Straight-line method for 2025 Activity method (units of output) for 2025 Activity method (working hours) for 2025 LA $ $ $ LA
Tamarisk Company purchased equipment for $228,000 on October 1, 2025. 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 2025, Tamarisk uses the equipment for 550 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Tamarisk is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to O decimal places, e.g. 45,892.) (a) (b) (c) Straight-line method for 2025 Activity method (units of output) for 2025 Activity method (working hours) for 2025 LA $ $ $ LA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Intermediate Accounting 105
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Transcribed Image Text:Tamarisk Company purchased equipment for $228,000 on October 1, 2025. 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 2025,
Tamarisk uses the equipment for 550 hours and the equipment produces 1,100 units.
Compute depreciation expense under each of the following methods. Tamarisk is on a calendar-year basis ending December 31. (Round
rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to O decimal places, e.g. 45,892.)
(a) Straight-line method for 2025
(b) Activity method (units of output) for 2025
(c)
(d)
(e)
Activity method (working hours) for 2025
Sum-of-the-years'-digits method for 2027
Double-declining-balance method for 2026
$
$
$
$
$
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