When presented in the report, conclusions and recommendation…
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When presented in the repоrt, cоnclusiоns аnd recommendаtions should аlways be based on
Scоtt Cоmpаny purchаsed equipment fоr $250,000 on October 1, 2025. It is estimаted that the equipment will have a useful life of 5 years and a salvage value of $25,000. Estimated production is 30,000 units and estimated working hours 20,000. Scott uses the equipment for 1,000 hours and 4,700 hours, and the equipment produces 3,500 units and 6,000 units during 2025 and 2026, respectively. Instructions: Compute depreciation expense under each of the following methods for 2025 and 2026 assuming Scott’s year end is December 31. Straight-line method. Activity method (units of output). Activity method (working hours). Sum-of-the-years’-digits method. Double-declining balance method. Compute the book value of the equipment at December 31, 2026 for each method A. - E.