Wenner Furnace Corp. purchased machinery for $320,850 on May 1, 2012
Intermediate Financial Accounting Question 1 Wenner Furnace Corp. purchased machinery for $320,850 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $17,250, production of 276,000 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 29,325 units. From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round answers to 0 decimal places, e.g. $45,892.) Question 2 Question 2 Conan O’Brien Logging and Lumber Company owns 4,000 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $610 per acre. In 2012, O’Brien began selectively logging this timber tract. In May of 2012, Mount Leno erupted, burying the timberland of O’Brien under a foot of ash. All of the timber on the O’Brien tract was downed. In addition, the logging roads, built at a cost of $157,000, were destroyed, as w...