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Wynn Furnace Corp. purchased machinery for $345,000 on May 1, 2014. It is estimated that it will have a useful life of 10 years, scrap value of $45,000, production of 120,000 units, and working hours of 12,500. During 2015 Wynn uses the machinery for 2,000 hours, and the machinery produces 25,000 units.
Instructions
From the information given, compute the depreciation charge for 2015 under each of the following methods.
(Round to three decimal places).
(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.)
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