Wildhorse Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment...

 

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Wildhorse Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Wildhorse uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Wildhorse 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 0 decimal places, e.g. 45,892.) (a) Straight-line method for 2020 (b) Activity method (units of output) for 2020 Activity method (working hours) for 2020 Sum-of-the-years-digits method for 2022 $ Double-declining-balance method for 2021 $ (c) (d) (c) $ $ $ Wildhorse Company purchased equipment for $266,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 40,000 units and estimated working hours are 20,000. During 2020, Wildhorse uses the equipment for 530 hours and the equipment produces 1,100 units. Compute depreciation expense under each of the following methods. Wildhorse 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 0 decimal places, e.g. 45,892.) (a) Straight-line method for 2020 (b) Activity method (units of output) for 2020 Activity method (working hours) for 2020 Sum-of-the-years-digits method for 2022 $ Double-declining-balance method for 2021 $ (c) (d) (c) $ $ $

Answer rating: 100% (QA)

a Straight Line Method Depreciable asset Cost of Asset Salvage value 266000 14000 252... View the full answer