E11-6B (Depreciation Computations—Five Methods, Partial Periods) Scott Company purchased equipment for $250,000 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $50,000. Estimated production is 20,000 units and estimated working hours 10,000. During 2014 Scott uses the equipment for 900 hours, and the equipment produces 1,500 units.


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Compute depreciation expense under each of the following methods. Scott is on a calendar-year basis ending December 31.

(a) Straight-line method for 2014.

(b) Activity method (units of output) for 2014.

(c) Activity method (working hours) for 2014.

(d) Sum-of-the-years’-digits method for 2016.

(e) Double-declining balance method for 2015

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