Jon Seceda Furnace Corp. purchased machinery for $315,000 on May 1, 2014. It is estimated that it
Question:
Jon Seceda 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 240,000 units, and working hours of 25,000. During 2015, 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 2015 under each of the following methods.
(a) Straight-line. (d) Sum-of-the-years’-digits.
(b) Units-of-output. (e) Declining-balance (use 20% as the annual rate).
(c) Working hours
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Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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