Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The equipment is expected to have a service life of ten years, or 40,000 hours, and a residual value of $70,000. During 2019, the equipment was operated for 5,000 hours, and during 2020, it was operated for 7,000 hours. Required: Compute the depreciation expense for this machine in 2019 and 2020 under each of the following depreciation methods: When required, round your answers to the nearest dollar.     2019 2020 a. Straight-line method $fill in the blank 1 $fill in the blank 2 b. Activity method (hours) $fill in the blank 3 $fill in the blank 4 c. Double-declining-balance method $fill in the blank 5 $fill in the blank 6 d. Sum-of-the-years'-digits method $fill in the blank 7 $fill in the blank 8

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...
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Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The equipment is expected to have a service life of ten years, or 40,000 hours, and a residual value of $70,000. During 2019, the equipment was operated for 5,000 hours, and during 2020, it was operated for 7,000 hours.

Required:
Compute the depreciation expense for this machine in 2019 and 2020 under each of the following depreciation methods: When required, round your answers to the nearest dollar.

    2019 2020
a. Straight-line method $fill in the blank 1 $fill in the blank 2
b. Activity method (hours) $fill in the blank 3 $fill in the blank 4
c. Double-declining-balance method $fill in the blank 5 $fill in the blank 6
d. Sum-of-the-years'-digits method $fill in the blank 7

$fill in the blank 8

 

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