Jon Seceda Furnace Corp. purchased machinery for $315,000 on May 1, 2008. It is estimated that it will have a useful life of 10 years, scrap value of $15,000, production of 240,000 units, and working hours of 25,000. During 2009 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 2009 under each of the following methods (round to three decimal places).

(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).