Sheridan Furnace Corp. purchased machinery for $318,000 on May 1, 2025. It is estimated that it...

 

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Sheridan Furnace Corp. purchased machinery for $318,000 on May 1, 2025. It is estimated that it will have a useful life of 10 years, scrap value of $46,000, production of 100,000 units, and working hours of 12,500. During 2026 Sheridan uses the machinery for 2,000 hours, and the machinery produces 25,000 units. From the information given, compute the depreciation charge for 2026 under each of the following methods: (Round rate per unit and rate per hour to 2 decimal places, e.g. 5.25 and final answers to O decimal places, e.g. 45,892.) (a) (b) Straight-line. (d) Units-of-output. (c) Working hours. Sum-of-the-years'-digits. (e) Declining-balance. (Use 20% as the annual rate.) LA LA LA LA $ LA Sheridan Furnace Corp. purchased machinery for $318,000 on May 1, 2025. It is estimated that it will have a useful life of 10 years, scrap value of $46,000, production of 100,000 units, and working hours of 12,500. During 2026 Sheridan uses the machinery for 2,000 hours, and the machinery produces 25,000 units. From the information given, compute the depreciation charge for 2026 under each of the following methods: (Round rate per unit and rate per hour to 2 decimal places, e.g. 5.25 and final answers to O decimal places, e.g. 45,892.) (a) (b) Straight-line. (d) Units-of-output. (c) Working hours. Sum-of-the-years'-digits. (e) Declining-balance. (Use 20% as the annual rate.) LA LA LA LA $ LA

Answer rating: 100% (QA)

a Straightline Straightline depreciation is the simplest method of calculating depreciation It is calculated by dividing the purchase price of the asset by its estimated life to determine the annual d... View the full answer