Business, 20.07.2021 17:00 ROBIOX3551
Jon Seceda Furnace Corp. purchased machinery for $315,000 on May 1, 2020. 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 2021, Seceda Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units.
Required:
From the information given, compute the depreciation charge for 2021 under each of the following methods.
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).
Answers: 1
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