Splish Company purchased machinery for $147,000 on January 1, 2017. It is estima

Question

Splish Company purchased machinery for $147,000 on January 1, 2017. It is estimated that the machinery will have a useful life of 20 years, salvage value of $14,700, production of 81,000 units, and working hours of 38,200. During 2017, the company uses the machinery for 14,134 hours, and the machinery produces 17,820 units. Compute depreciation under the straight-line, units-of-output, working hours, sum-of-the-years’-digits, and double-declining-balance methods. (Round intermediate calculations to 5 decimal places, e.g. 1.56487 and final answers to 0 decimal places, e.g. 5,125.)

Depreciation Straight-line $

Units-of-output $

Working hours $

Sum-of-the-years’-digits $

Double-declining-balance $

Explanation / Answer

Calculate depreciation expense for 2017 :

Depreciation Straight-line (147000-14700/20) 6615 Units-of-output (147000-14700/81000*17820) 29106 Working hours 147000-14700/38200*14134) 48951 Sum-of-the-years’-digits (147000-14700*20/210) 12600 Double-declining-balance 147000*10% 14700

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