Winsey Company purchased equipment on January 2, 2019, for $700,000. The equip-ment has the following characteristics: Estimated service life LO 11.2 Estimated residual value 20 years, 100,000 hours, 950,000 units of output $50,000 During 2019 and 2020, the company used the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively. SHOW ME HOW Required: Compute depreciation expense for 2019 and 2020 under each of the following methods: 1. straight-line method 2. activity method based on hours worked (round the depreciation rate per hour to 2 decimal places) 3. activity method based on units of output (round the depreciation rate per unit to 2 decimal places)
Winsey Company purchased equipment on January 2, 2019, for $700,000. The equip-ment has the following characteristics: Estimated service life
LO 11.2 Estimated residual value
20 years, 100,000 hours, 950,000 units of output $50,000
During 2019 and 2020, the company used the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively.
SHOW ME HOW
Required:
Compute
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