Accounting Intermediate II

Question TWO FLO Corp. purchased machinery for $ 250,000 on July 1, 2015. It is estimated that it will have a useful life of 10 years, residual value of $ 25,000, production of 100,000 units, and working hours of 40,000. During 2016, FLO Corp. uses the machinery for 6,500 hours and the machinery produces 30,000 units. Instructions: From the information given, compute the depreciation charge for 2016 under each of the following methods. a) Straight-line. (10 marks) b) Units-of-output. (10 marks) c) Working hours. (10 marks) d) Sum-of-the years'- digits. (10 marks) e) Double-declining balance. (10 marks)