Daawayne Wade Company purchased equipment for $212,000 on October 1,2008. It is estimated that the equipment will ahve a usefule life of 8 years and a salvage value of $12,000. Estimated production is 40,000 units and estimated working hours 20,000 During 2008,Wade uses the equipment for 525 hours and the equipment produces 1,000 units.
Instruction:
Compute depreciton expenses under each of the following methods. Wade is on a calendar-year basis on December 31(Round to nearest dollar )
(a)Straight-line Method
(b)Activity Method(units of output ) for 2008
(c)Activity Method(Working hours) for 2008
(d) Sum-of-years' digits method
(e)Double-declining balance method for 2008