E11-4, Depreciation Computations - Five methods, File 11e-4
Depreciation Computation - Five Methods-
E11-4 Jon Seceda Furnace Corp, purchased machinery for $315,000 on May 1,2007. 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 2008 Seceda Corp uses the machinery for 2,650 hours, and the machinery produces 25,500 units.
Instructions; From the Information given compute the depreciation charge for 2008 under each of the following methods. (Round off to nearest dollar ).
1. Straight - Line
2. Units- of Output
3. Working- Hours
4. Sum- of -the - years- digits
5. Declining- balance ( use 20% as the annual rate).
Use financial calculator for calculations
