Exercise 11-06 Bonita Company purchased equipment for $264,000 on October 1, 2020. It is estimated...
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Exercise 11-06 Bonita Company purchased equipment for $264,000 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 45,000 units and estimated working hours are 20,000. During 2020, Bonita uses the equipment for 500 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Bonita 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 (c) Activity method (working hours) for 2020 (d) Sum-of-the-years'-digits method for 2022 (e) Double-declining-balance method for 2021 Click if you would like to Show Work for this question: Open Show Work
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