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2- Future Corp. purchased machinery for $279,000 on May 1, 2018. It is estimated that it will have a useful life of 10 years, residual
2- Future Corp. purchased machinery for $279,000 on May 1, 2018. It is estimated that it will have a useful life of 10 years, residual value of $15,000, production of 240,000 units, and working hours of 25,000. During 2019, Future Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Required: Compute the depreciation charge for 2019 under each of the following methods (a) Straight-line (2 marks) (b) Units-of-output (2 marks) (c) Working hours. (2 marks) (d) Sum-of-the-years-digits. (2 marks) (e) Double-declining-balance, (2 marks)
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