Coronado Company purchased equipment for $222,800 on October 1, 2025. It is estimated that the equipment...

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Coronado Company purchased equipment for $222,800 on October 1, 2025. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 36,000 units and estimated working hours are 20,000. During 2025, Coronado uses the equipment for 550 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Coronado is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to O decimal places, e.g. 45,892.) (a) Straight-line method for 2025 $ (b) Activity method (units of output) for 2025 SA LA (c) Activity method (working hours) for 2025 $ (d) Sum-of-the-years'-digits method for 2027 (e) Double-declining-balance method for 2026 LA SA Coronado Company purchased equipment for $222,800 on October 1, 2025. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 36,000 units and estimated working hours are 20,000. During 2025, Coronado uses the equipment for 550 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Coronado is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to O decimal places, e.g. 45,892.) (a) Straight-line method for 2025 $ (b) Activity method (units of output) for 2025 SA LA (c) Activity method (working hours) for 2025 $ (d) Sum-of-the-years'-digits method for 2027 (e) Double-declining-balance method for 2026 LA SA

Answer rating: 100% (QA)

a Straightline method for 2025 The straightline depreciation rate is Cost of asset Salvage value Use... View the full answer