Whispering Company purchased equipment for $286,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,200. Estimated production is 48,000 units and estimated working hours are 20,000. During 2020, Whispering uses the equipment for 550 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Whispering is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, eg. 5.35 and final answers to O decimal places, eg. 45,892.) (a) Straight-line method for 2020 (b) Activity method (units of output) for 2020 $ (c) Activity method (working hours) for 2020 2$ (d) Sum-of-the-years'-digits method for 2022 %24 (e) Double-declining-balance method for 2021

Whispering Company purchased equipment for $286,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,200. Estimated production is 48,000 units and estimated working hours are 20,000. During 2020, Whispering uses the equipment for 550 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Whispering is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, eg. 5.35 and final answers to O decimal places, eg. 45,892.) (a) Straight-line method for 2020 (b) Activity method (units of output) for 2020 $ (c) Activity method (working hours) for 2020 2$ (d) Sum-of-the-years'-digits method for 2022 %24 (e) Double-declining-balance method for 2021

Name: Whispering Company purchased equipment for $286,800 on October 1, 202
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Description: Whispering Company purchased equipment for $286,800 on October 1, 2020. It is estimated that the equipment will have a useful lifeof 8 years and a salvage value of $13,200. Estimated production is 48,000 units and estimated working hours are 20,000.

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 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...

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