Question

Pina Company purchased machinery for $176,400 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 91,400 units, and working hours of 40,900. During 2017, the company uses the machinery for 11,452 hours, and the machinery produces 11,882 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		$

Answer 1

	Depreciation
Straight-line	$        8,085
Units-of-output	$      21,021
Working hours	$      45,276
Sum-of-the-years’-digits	$      15,400
Double-declining-balance	$      16,170

	Depreciation
Straight-line	=(176400-14700)/20
Units-of-output	=(176400-14700)/91400*11882
Working hours	=(176400-14700)/40900*11452
Sum-of-the-years’-digits	=(176400-14700)*20/210
Double-declining-balance	=2*(176400-14700)/20