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Depreciation Computations Five Methods) Jon Seceda Furnace 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.
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.(d) Sum-of-the-years-digits. (b) Units-of-output. (e) Declining-balance (use 20% as the annual rate). (c)Working hours.
Finding additional borrowings required from bank at given current ratio - What other potential sources of financing are available to the company?
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