E11-4B (Depreciation Computations—Five Methods) Wynn Furnace Corp. purchased machinery for $345,000 on May 1, 2014. It is estimated that it will have a useful life of 10 years, scrap value of $45,000, production of 120,000 units, and working hours of 12,500. During 2015 Wynn uses the machinery for 2,000 hours, and the machinery produces 25,000 units.


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From the information given, compute the depreciation charge for 2015 under each of the following methods.

(Round to three decimal places).

(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.)

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