Question

Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $40,000. The estimated useful life was five years and the residual value was $4,500. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production for year 1, 2,100 units; year 2, 3,100 units; year 3, 2,100 units; year 4, 2,100 units; and year 5, 600 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. (Do not round intermediate calculations.)
A.) straight-line
B.) Units of Production
C.) Double declining balance

Answer 1

Answer:

Schedule is in the MS Excel file attached with this answer.

Explanation:

Straight Line depreciation is a method of depreciation in which the cost of the asset net of residual value is divided over useful life.

Unit of production method Depreciate the asset based on the production for the period done by asset and total lifetime production capacity of the asset..

In double declining method the double depreciation is charged.

Download xlsx