ABC Company Manufacturing and Equipment
1. ABC Company purchased manufacturing equipment on February 1, 2007 for $504,000 to be used in a new manufacturing facility production. The equipment is expected to have a salvage value of $24,000 at the end of 12 years of production. It should produce 435,000 units and maintain 49,000 hours of production. During 2008 the equipment is used 4,170 hours to produce 32,000 units.
Calculate depreciation on the above equipment for the year 2008 using a. Straight Line b. Units-of-output c. Working hours d. Sum-of-the-years digits and e. Declining balance (double the SL rate)