(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: fill in all shown tables

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.)

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

Cost:

Amount

Salvage value:

Amount

Depreciable value:

Formula

Life units expected:

Number

Depreciation per unit:

Formula

Period units:

Number

Period depreciation:

Formula

(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.)

Cost:

Amount

Salvage value:

Amount

Depreciable value:

Formula

Hours of expected life:

Number

Depreciation per hour:

Formula

Period hours:

Number

Period depreciation:

Formula

(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.)

First part of 2015

Formula

Time period factor

Formula

Second part of 2015

Formula

Time period factor

Formula

Formula

(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.)

First part of 2015

Formula

Time period factor

Formula

Second part of 2015

Formula

Time period factor

Formula

Formula

Depreciation expense for year:

3

Formula

(c) Compute the amount of depreciation for each Years 1 through 3 using the double-declining balance method. (In performing your calculations, round constant percentage to the nearest one-hundredth of a point and round answers to the nearest dollar.)

Hint: Since "Double-Declining Balance Method" title does not contain an "S", do not use salvage value to compute periodic depreciation expense. However, ensure that book value does not violate salvage value.

Cost:

Amount

Salvage value:

Amount

Asset life: (Years)

0

Annual Straight-line Depreciation rate:

Formula

Double-Declining factor:

200%

Double-Declining annual rate:

Formula

Year:

Beginning Balance

Double Declining rate:

Annual Depreciation Amount:

Ending Balance

1

Amount

Percentage

Formula

Formula

2

Value

Percentage

Formula

Formula

3

Value

Percentage

Formula

Formula

The Excel formula for Accelerated Depreciation is =DDB(Cost,Salvage,Life,Period,Factor)

1

Formula

2

Formula

3

Formula