Winsey Company purchased equipment on January 2, 2019, for $700,000. The equipment has the following characteristics: Estimated service life 20 years, 100,000 hours, 950,000 units of output Estimated residual value $50,000 During 2019 and 2020, the company used the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively. Required: Compute depreciation expense for 2019 under each of the following methods: Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar. 1. Straight-line method $ fill in the blank 1 2. Activity method based on hours worked $ fill in the blank 2 3. Activity method based on units of output $ fill in the blank 3 4. Sum-of-the-years'-digits method $ fill in the blank 4 5. Double-declining-balance method $ fill in the blank 5 6. 150%-declining-balance method $ fill in the blank 6 Compute depreciation expense for 2020 under each of the following methods: Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar. 1. Straight-line method $ fill in the blank 7 2. Activity method based on hours worked $ fill in the blank 8 3. Activity method based on units of output $ fill in the blank 9 4. Sum-of-the-years'-digits method $ fill in the blank 10 5. Double-declining-balance method $ fill in the blank 11 6. 150%-declining-balance method $ fill in the blank 12 7. Next Level If Winsey used a service life of 16 years, 80,000 hours, or 750,000 units of output, what would be the effect on depreciation expense under the straight-line, sum-of-the-years'-digits, and declining-balance depreciation methods? If required, round your answers to the nearest dollar. 2019 2020 Straight-line method $ fill in the blank 13 $ fill in the blank 14 Activity method based on hours worked $ fill in the blank 15 $ fill in the blank 16 Activity method based on units of output $ fill in the blank 17 $ fill in the blank 18 Sum-of-the-years'-digits method $ fill in the blank 19 $ fill in the blank 20 Double-declining-balance method $ fill in the blank 21 $ fill in the blank 22 150%-declining-balance method $ fill in the blank 23 $ fill in the blank 24

Winsey Company purchased equipment on January 2, 2019, for $700,000. The equipment has the following characteristics: Estimated service life 20 years, 100,000 hours, 950,000 units of output Estimated residual value $50,000 During 2019 and 2020, the company used the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively. Required: Compute depreciation expense for 2019 under each of the following methods: Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar. 1. Straight-line method $ fill in the blank 1 2. Activity method based on hours worked $ fill in the blank 2 3. Activity method based on units of output $ fill in the blank 3 4. Sum-of-the-years'-digits method $ fill in the blank 4 5. Double-declining-balance method $ fill in the blank 5 6. 150%-declining-balance method $ fill in the blank 6 Compute depreciation expense for 2020 under each of the following methods: Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar. 1. Straight-line method $ fill in the blank 7 2. Activity method based on hours worked $ fill in the blank 8 3. Activity method based on units of output $ fill in the blank 9 4. Sum-of-the-years'-digits method $ fill in the blank 10 5. Double-declining-balance method $ fill in the blank 11 6. 150%-declining-balance method $ fill in the blank 12 7. Next Level If Winsey used a service life of 16 years, 80,000 hours, or 750,000 units of output, what would be the effect on depreciation expense under the straight-line, sum-of-the-years'-digits, and declining-balance depreciation methods? If required, round your answers to the nearest dollar. 2019 2020 Straight-line method $ fill in the blank 13 $ fill in the blank 14 Activity method based on hours worked $ fill in the blank 15 $ fill in the blank 16 Activity method based on units of output $ fill in the blank 17 $ fill in the blank 18 Sum-of-the-years'-digits method $ fill in the blank 19 $ fill in the blank 20 Double-declining-balance method $ fill in the blank 21 $ fill in the blank 22 150%-declining-balance method $ fill in the blank 23 $ fill in the blank 24

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 10E: Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual...

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Winsey Company purchased equipment on January 2, 2019, for $700,000. The equipment has the following characteristics:

Estimated service life	20 years, 100,000 hours, 950,000 units of output
Estimated residual value	$50,000

During 2019 and 2020, the company used the machine for 4,500 and 5,500 hours, respectively, and produced 40,000 and 60,000 units, respectively.

Required:

Compute depreciation expense for 2019 under each of the following methods:

Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar.

1. Straight-line method	$ fill in the blank 1
2. Activity method based on hours worked	$ fill in the blank 2
3. Activity method based on units of output	$ fill in the blank 3
4. Sum-of-the-years'-digits method	$ fill in the blank 4
5. Double-declining-balance method	$ fill in the blank 5
6. 150%-declining-balance method	$ fill in the blank 6

Compute depreciation expense for 2020 under each of the following methods:

Round the depreciation rate per hour to 3 decimal places and depreciation rate per unit to 2 decimal places. If required, round your final answers to the nearest dollar.

1. Straight-line method	$ fill in the blank 7
2. Activity method based on hours worked	$ fill in the blank 8
3. Activity method based on units of output	$ fill in the blank 9
4. Sum-of-the-years'-digits method	$ fill in the blank 10
5. Double-declining-balance method	$ fill in the blank 11
6. 150%-declining-balance method	$ fill in the blank 12

7. Next Level If Winsey used a service life of 16 years, 80,000 hours, or 750,000 units of output, what would be the effect on depreciation expense under the straight-line, sum-of-the-years'-digits, and declining-balance depreciation methods?

If required, round your answers to the nearest dollar.

	2019	2020
Straight-line method	$ fill in the blank 13	$ fill in the blank 14
Activity method based on hours worked	$ fill in the blank 15	$ fill in the blank 16
Activity method based on units of output	$ fill in the blank 17	$ fill in the blank 18
Sum-of-the-years'-digits method	$ fill in the blank 19	$ fill in the blank 20
Double-declining-balance method	$ fill in the blank 21	$ fill in the blank 22
150%-declining-balance method	$ fill in the blank 23	$ fill in the blank 24

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