Sunland Corp. purchased machinery for $313,950 on May 1, 2025. It is estimated that it will have a useful life of 10 years, a salvage value of $16,950, a production of 237,600 units, and working hours of 25,000. During 2026, Sunland Corp. uses the machinery for 2,650 hours, and the machinery produces 28,800 units.From the information given, compute the depreciation charge for 2026 under each of the following methods. (Round intermediate calculations to 2 decimal places, e.g. 5.25, and final answers to 0 decimal places, e.g. 45,892.)(a) Straight-line: $29,700(b) Units-of-output: $36,000(c) Working hours: $31,482(d) Sum-of-the-years'-digits: $21,240(e) Declining-balance (use 20% as the annual rate): $24,136

Answer : (a) straight line : straight line = (313,950 - 16,950) / 10 straight line = $29,700 b. Units of output : Units of output = (313,950 - 16,950) /237,600 * 28,800 Units of output= 297,000 / 237600*28800 Units of output= $36,000 c. Working hours: Working hours =(313,950 - 16,950) / 25,000 * 2650 Working hours = 297,000 / 25000 * 2650 Working hours = $31,482 d. Sum of the year digit : Sum of the year =10 + 9 + 8+ 7 + 6+ 5 + 4 + 3+2+1 = 55 Jan 2025 - April 2025 = (10/55) * (313,950 - 16,950) * 4 /12 = 18,000 May 2025 - Dec2025 = (10/55) * (313,950 - 16,950) * 8 /12 = 36,000 Total dep. = 18,000 + 36,000 = $54,000 Sum of the year digit = $54,000 e. Declining balance (Use 20% as the annual rate : Jan 2025 - April 2025 =$313,950 * 20%* 4/12 = 20,930 May 2025 - Dec.2025 = ($313,950 - (313,950*20%))*20%*8/12 = 33,488 Declining balance = 20,930 + 33,488 Declining balance = $54,418

Answered: mpute the depreciation charge for 2026…

Business

Accounting

mpute the depreciation charge for 2026 under e.g. 5.25 and final answers to O decimal places, e.g $ LA $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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