Wenner Furnace Corp. purchased machinery for $613,800 on May 1, 2012. It is esti

Question

Wenner Furnace Corp. purchased machinery for $613,800 on May 1, 2012. It  is estimated that it will have a useful life of 10 years, salvage value  of $233,000, production of 528,000 units, and working hours of 25,000.  During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the  machinery produces 56,100 units.

From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round answers to 0 decimal places, e.g. $45,892.)

(a)
Straight-line
$ (b)
Units-of-output
$ (c)
Working hours
$ (d)
Sum-of-the-years Wenner Furnace Corp. purchased machinery for $613,800 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $233,000, production of 528,000 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 56,100 units. From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round answers to 0 decimal places, e.g. $45,892.)

Explanation / Answer

  (613,800- 233,000)/10= 380,000/10= 38,000

((613,800-233,000)/528,000)*56,100 = 40,460

((613,800-233,000)/25,000)*2,650 = 40364.8

(a)
Straight-line

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