excercise 11-4

7 3 E11.4 (Depreciation Computations Five Methods) Jon Seceda 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 1 2 3 5 Instructions: From the information given, compute the depreciation charge for 2015 under each of the following methods. (Round to the nearest dollar.) (a) Straight-line (Note - Utilize Excel formula =SLN(Cost, Salvage Life) to solve the problem.) Formula! (b) Units-of-output (Note: Since units-of-production has an "s" in it, utilize salvage value in computing period depreciation.) Cost: Amount Salvage value Amount Depreciable value Formula Life units expected Number Depreciation per unit: Formula Period units Number Period depreciation Formula (c) Working hours (Note: Working hours is a "units-of-production" method and since units-of- production has an "s" in it utilize salvage value in computing period depreciation.) Cost Amount Salvage value Amount Depreciable value Formula Hours of expected life: Number Depreciation per hour Formula Instructions Exercise 1 Exercise