Muggsy Bogues Company purchased equipment for $212,000 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 40,000 units and estimated working hours are 20,000. During 2020, Bogues uses the equipment for 525 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Bogues 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 $enter a dollar amount
(b) Activity method (units of output) for 2020 $enter a dollar amount
(c) Activity method (working hours) for 2020 $enter a dollar amount
(d) Sum-of-the-years'-digits method for 2022 $enter a dollar amount
(e) Double-declining-balance method for 2021 $enter a dollar amount

A. $6,250

B. $5000

C. $5250

D. $37,500

E. $49,688

Explanation:

(a)Computation of depreciation expense using the Straight-line method for 2020

Depreciation expense= ($212,000-$12,000/8×3/12)

Depreciation expense=($200,000/8×3/12)

Depreciation expense=$25,000×3/12

Depreciation expense=$6,250

(b) Computation depreciation expense using Activity method (units of output) for 2020

Depreciation expense=($212,000-$12,000/$40,000)×$1000

Depreciation expense=($200,000/$40,000)×$1,0000

Depreciation expense=5×$1,000

Depreciation expense=$5000

(c) Computation for depreciation expense using Activity method (working hours) for 2020

Depreciation expense=($212,000-$12,000/$20,000)×525 hours Depreciation expense=($200,000/$20,000)×525 hours

Depreciation expense=$10× 525 hours

Depreciation expense=$5250

(d) Computation for depreciation expense using the Sum of the years digits method for 2022

Depreciation expense=($212,000-$20,000×7/36×9/1)2+($212,000-$12,000×6/36×3/12)

Depreciation expense=($200,000×7/36×9/12)+($200,000×6/36×3/12)

Depreciation expense=$29,166 +$8,333

Depreciation expense=$37,500

(e) Computation for depreciation expense using the Double balance method for 2021

Depreciation expense=($200,000+$12000×25%×9/12)+($200,000 +$12,000×75% ×25% ×3/12)

Depreciation expense=($212,000×25%×9/12)+($212,000×75% ×25% ×3/12)

Depreciation expense=$39,750+$9,938

Depreciation expense=$49,688

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!

options ?

explanation: