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On January 1, 2019, Wildhorse Company, a small machine-tool manufacturer, acquired for $2,310,000 a piece of new industrial equipment. The new equipment had a useful life of 5 years, and the salvage value was estimated to be $66,000. Wildhorse estimates that the new equipment can produce 17,300 machine tools in its first year. It estimates that production will decline by 1,170 units per year over the remaining useful life of the equipment. The following depreciation methods may be used: (1) straight-line, (2) double-declining-balance, (3) sum-of-the-years'-digits, and (4) units-of-output. For tax purposes, the class life is 7 years. Use the MACRS tables for computing depreciation. Recovery 3-year Year (200% DB) 1 33.33 2 44.45 3 14.81 4........ 7.41 5 6 7 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21... MACRS Depreciation Rates by Class of Property 5-year 7-year 10-year (200% DB) (200% DB) (200% DB) 20.00 14.29 10.00 32.00 24.49 18.00 19.20 17.49 14.40 11.52 12.49 11.52 11.52 8.93 9.22 5.76 8.92 7.37 8.93 6.55 4.46 6.55 6.56 6.55 3.28 15-year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-year (150% DB) 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462" 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 *Switchover to straight-line depreciation (21) Your answer is correct. Compute accumulated depreciation under the following methods: (1) straight-line, (2) double-declining-balance, (3) sum-of-the- years'-digits, and (4) units-of-output for the 3-year period ending December 31, 2021. Ignore present value, income tax, and deferred income tax considerations. (Round cost per unit to 2 decimal places, e.g. 25.12. Round other intermediate calculations to 6 decimal places, e.g. 1.524687 and final answers to 0 decimal places, e.g. 5,125.) Accumulated Depreciation Methods 2019 2020 2021 (1) Straight-line $ 448800 $ 897600 $ 1346400 (2) Double-declining balance $ 924000 $ 1478400 $ 1811040 (3) Sum-of-the- years'-digits $ 748000 $ 1346400 $ 1795200 (4) Units-of-output $ 519000 $ 1002900 $ 1451700 (b1) Compute accumulated depreciation by using MACRS and optional straight-line method for the 3-year period ending December 31, 2021. Ignore present value considerations. Accumulated Depreciation Methods 2019 2020 2021 MACRS $ $ TA $ Optional straight-line method $ $ $

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