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Computation of depreciation under various methods.
Jon Seceda Furnace Corp. purchased Machinery for $315,000 on May 1, 2007. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2008 Seceda 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 2008 under each of the following methods. (Round to the nearest dollar.) a) Straight-line b) Units-of-output c) Working hours d) Sum-of-years-digits e) Declining-balance (use 20% as annual rate)
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