Jon Seceda Furnace Corp purchased machinery for $315,000 on May 1, 2017 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 2018, Seceda Corp uses the machinery for 2,650 hours, and the machinery prod...

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Jon Seceda Furnace Corp. purchased machinery for $315,000 on May 1, 2017. It is estimated that it

Question:

Jon Seceda Furnace Corp. purchased machinery for $315,000 on May 1, 2017. It is estimated that it will have a useful life of 10 years, of $15,000, production of 240,000 units, and working hours of 25,000. During 2018, 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 2018 under each of the following methods. (Round to the nearest dollar.)
(a) Straight-line
(b) Unit of production
(c) Working hours
(d) Sum-of-the-years'-digits
(e) Declining-balance (use 20% as the annual rate)
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...