Depreciation computations five methods -
Jon Secada Furnace Corp. Purchased machinery for $315,000, on May 1, 2014. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,00 units, and working hours of 25,000. During 2015, Secada Corp uses the machinery for 2,650 hours, and the machinery produces 25,500 units
Instructions:
From the information given, compute the depreciation charge for 2015 under each of the following methods. (Round to the nearest dollar)
(a) Straight-line
(b) Units-of-output
(c) Working hours
(d) Sum-of-the years'-digits
(e) Declining-balance (use 20% as the annual rate)