Jon Bonjovi Guitar Corp. purchased machinery on May 1, 2020. The following are provided concerning the machinery.     Machinery cost      $ 315,000         Estimated salvage value         15,000         Estimated useful life                10 years     Estimated production        240,000 units       Estimated working hours         25,000 hours     Actual hours used in 2021           2,650 hours     Actual units produced in 2021       25,500 units                   Instructions:             From the information given, compute the depreciation charge for 2021 under each of the following methods. (Round to the nearest dollar.)Please show all steps (e) Declining-balance (use 20% as the annual rate).                    $

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Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.