Sheffield Corp. purchased machinery for $349,650 on May 1, 2017. It is estimated that it...
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Sheffield Corp. purchased machinery for $349,650 on May 1, 2017. It is estimated that it will have a useful life of 10 years, salvage value of $16,650, production of 266,400 units, and working hours of 25,000. During 2018, Sheffield Corp. uses the machinery for 2,650 hours, and the machinery produces 28,305 units.
Question 1 Sheffield Corp. purchased machinery for $349,650 on May 1, 2017. It is estimated that it will have a useful life of 10 years, salvage value of $16,650, production of 266,400 units, and working hours of 25,000. During 2018, Sheffield Corp. uses the machinery for 2,650 hours, and the machinery produces 28,305 units. From the information given, compute the depreciation charge for 2018 under each of the following methods. (Round intermediate calculations to 2 decimal places, e.g. 5.25 and final answers to O 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)
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Sheffield Corp. purchased machinery for $349,650 on May 1, 2017. It is estimated that it will have a useful life of 10 years, salvage value of $16,650, production of 266,400 units, and working hours of 25,000. During 2018, Sheffield Corp. uses the machinery for 2,650 hours, and the machinery produces 28,305 units.