**E11-4 (Depreciation Computations—Five Methods) **Jon Seceda 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 (Note – Utilize Excel formula =SLN(Cost,Salvage,Life) to solve the problem.)

Formula

“(b) Units-of-output (Note: Since units-of-production has an “”s”" in it, utilize salvage value in computing

period depreciation.)”

“(c) Working hours (Note: Working hours is a “”units-of-production”" method and since units-of-

production has an “”s”" in it, utilize salvage value in computing period depreciation.)”

“(d) Sum-of-years-digits (Note – Utilize Excel formula =SYD(Cost,Salvage,Life,Period) to solve the

problem.) (Note: Second year covers two depreciation periods.)”

“(e) Declining balance, (10 year life, DDB results in 20% annual rate, use 200% for Factor in Excel).

(Note: Utilize Excel formula =DDB(Cost,Salvage,Life,Period,Factor) to solve the problem.

(Note: Second year covers two depreciation periods.)”