Question

1 The cost of equipment purchased by Charleston Inc. Oon June 1, 2017 is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 42,000 and its total production is estimated at 525,000 units. During 2017 the machine was operated 6,000 hours and produced 55,000 units. Buring 2018 the machine was operated 5,500 hours and produced 48,000 units. Compute depreciation expense on the machine for the year ending December 31, 2017, and the year ending December 31, 2018, using the following methods Straight Line Units-of-output working hours Sum-of-the-years-digits Declining Balance (twice the SL rate)

Answer 1

1) Calculate depreciation expense

	2017	2018
a. straight line	(89000-5000/7)*7/12 = 7000	12000
b Unit of output	(89000-5000/525000*55000 = 8800	7680
c Working hour	(89000-5000/42000)*6000 = 12000	11000
d Sum of year digit	(89000-5000)*7/28*7/12 = 12250	84000*7/28*5/12+84000*6/28*7/12 = 19250
e Declining balance	89000*28.57%*7/12 = 14833	89000*28.57%*5/12+89000*71.43%*28.57%*7/12 = 21190

Answer 2

How did you get an answer for 2018? and How did you get 84,000 in 2018 
(sum of year digit)

Thanks.