Answer:
(a) Straight-line
depreciable value = $107,100 - $6,300 = $100,800
depreciation expense per year = $100,800 / 7 = $14,400
depreciation expense 2020 = $14,400
depreciation expense 2021 = $14,400
(b) Units-of-output
depreciable value = $107,100 - $6,300 = $100,800
depreciation expense per unit = $100,800 / 630,000 = $0.16
depreciation expense 2020 = $0.16 x 59,400 = $9,504
depreciation expense 2021 = $0.16 x 51,800 = $8,288
(c) Working hours
depreciable value = $107,100 - $6,300 = $100,800
depreciation expense per working hour = $100,800 / 50,400 = $2
depreciation expense 2020 = $2 x 6,480 = $12,960
depreciation expense 2021 = $2 x 5,940 = $11,880
(d) Sum-of-the-years' digits
depreciable value = $107,100 - $6,300 = $100,800
depreciation expense 2020 = $100,800 x 7/28 = $25,200
depreciation expense 2021 = $100,800 x 6/28 = $21,600
(e) Double-declining-balance (twice the straight-line rate)
depreciation expense 2020 = $100,800 x 2/7 = $28,800
depreciation expense 2021 = $72,000 x 2/7 = $20,571
