Exercise 11-4 Jon Seceda Furnace Corp. purchased machinery for $544,950 on May 1

Question

Exercise 11-4

Jon Seceda Furnace Corp. purchased machinery for $544,950 on May 1, 2014. It is estimated that it will have a useful life of 10 years, salvage value of $25,950, production of 415,200 units, and working hours of 25,000. During 2015, Seceda Corp. uses the machinery for 2,650 hours, and the machinery produces 44,115 units.

From the information given, compute the depreciation charge for 2015 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'-digits

$

(e) Declining-balance (use 20% as the annual rate)

$

Explanation / Answer

Answer:(a) Straight-line:

(b) units - of- output:

(c) Working hours:

(d) Sum of years digit :

(e) Declining-balance (use 20% as the annual rate):

Particulars Amount Original cost 544950 Less: Salvage value 25950 Depreciation base 519000 Useful life 10 Dep charge for 2015 51900

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.