Monty Company purchased equipment for $237,300 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,560. Estimated production is 39,600 units and estimated working hours are 20,300. During 2017, Monty uses the equipment for 530 hours and the equipment produces 1,000 units.
Calculate depreciation :
a)Straight line method for 2017 = (237300-13560/8)*3/12 = $6992
b) Activity method (unit of output) = (237300-13560/39600)*1000 = $5650
c) Activity method (working hours) = (237300-13560/20300)*530 = 5841
d) Sum of year digit = (237300-13560)*7/36*9/12+(237300-13560)*6/36*3/12 = $41951
e) Double decline balance = 237300*25%*9/12+237300*75%*25%*3/12 = $55617
Monty Company purchased equipment for $237,300 on October 1, 2017. It is estimated that the equipment...
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