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Send to Gradebook < Prev Next Question 5 View Policies Current Attempt in Progress Marigold Corp. purchased machinery for $313,500 on May 1, 2020. It is estimated that it will have a useful life of 10 years, salvage value of $16,500, production of 237,600 units, and working hours of 25,000. During 2021, Marigold Corp. uses the machinery for 2,650 hours, and the machinery produces 26,520 units. From the information given, compute the depreciation charge for 2021 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) e Textbook and Media Attempts: 0 of 10 used Save for Later Submit Answ Send to Gradebook < Prev Previous

Answer 1

1. straight method:

cost = $ 3,13,500
salvage value=  $ 16,500
no. of years = 10
depreciation = $313500- $16500/10 =$29,700
2. unit of output=
cost =$3,13,500
salvage value= $ 16,500
unit produced= 237600
depreciation = [$ 313500-16500/ 237600]*26520 =$ 33150
3.working hours =
depreciation= [$313500-16500/25000]*2650=$31482
4. sum of year digit : 313500-16500=297000

year	depreciation	remaining of life	fraction	depreciation expenses
1	297000	10	10/55	54000
2	297000	9	9/55	48600
3	297000	8	8/55	43200
4	297000	7	7/55	37800
5	297000	6	6/55	32400
6	297000	5	5/55	27000
7	297000	4	4/55	21600
8	297000	3	3/55	16200
9	297000	2	2/55	10800
10	297000	1	1/55	5400

5. depreciation:

year	balances	depreciation	remaining balance
1	313500	62700	250800
2	250800	50160	200640
3	200640	40128	160512
4	160512	32102.4	128409.6
5	128409.6	25681.92	102727.68
6	102727.68	20545.536	82182.144
7	82182.144	16436.4288	65745.7152
8	65745.7152	13149.14304	52596.57216
9	52596.57216	10519.31	42077.2577
10	42077.2577	8415.45154	33661.8