Respuesta :
(a) $8,600
(b) $5,700
(c) $7,524
(d) $51,300 and
(e) $67,219
Explanation:
Given information's are
value of Equipment = $286,800 on October 1, 2020.
Accounting base = on a calendar-year basis ending December 31
(a) Straight-line method for 2020
Depreciation = value of Equipment - salvage value ÷ life span of Equipment
Depreciation = $286,800 - $13,200 ÷ 8 = $34,400
For 3 months from October 1st to 31st December 2020
= $34,400 ÷ 12 × 3 = $8,600
(b) Activity method (units of output) for 2020
Depreciation =Amount of Depreciation ÷ Total estimated production × unit produced during 2020
= $273,600 ÷ 48,000 = $5.7 × 1000 = $5,700
(c) Activity method (working hours) for 2020
Depreciation =Amount of Depreciation ÷ Total estimated working hours × working hours during 2020
= $273,600 ÷ 20,000 = $13.68 × 550 = $7,524
(d) Sum-of-the-years'-digits method for 2022
Instead of adding the individual digits in the years of the asset's useful life, the following formula can be used to compute the sum of the digits: n(n+1) divided by 2, where n = the useful life in years
Depreciate Cost = Original Cost - Salvage Value = (Cost - Salvage)
Fraction for a Given Period = (Life - Period + 1) / ((Life × (Life + 1)) / 2)
depreciation for 2022 is $51,300
(e) Double-declining-balance method for 2021
Double declining balance method is a form of an accelerated depreciation method in which the asset value is depreciated at twice the rate it is done in the straight-line method
Double Declining Balance = 2 X Cost of the asset X Depreciation rate
= 2 × $286,800 × 12.5 ÷100 = $67,219