Reference no: EM132463746

Novak Company purchased equipment for $237,300 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $13,560. Estimated production is 39,600 units and estimated working hours are 20,300. During 2017, Novak uses the equipment for 530 hours and the equipment produces 1,000 units.

Question problem 1: depreciation expense under each of the following methods. Novak 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 2017 $

(b) Activity method (units of output) for 2017 $

(c) Activity method (working hours) for 2017 $

(d) Sum-of-the-years'-digits method for 2019 $

(e) Double-declining-balance method for 2018 $