Alexa Plastics Company purchased a new stamping machine at the beginning of the year at a cost of $280,000. The estimated residual value was $30,000. Assume that the estimated useful life was five years, and the estimated productive life of the machine was 250,000 units. Actual annual production was as follows:

Year Units

1 .........73,000

2 .........62,000

3 .........30,000

4 .........43,000

5 .........42,000

Required:

1. Complete a separate depreciation schedule for each of the alternative methods. Round your answers to the nearest dollar.

a. Straight-line.

b. Units-of-production.

c. Double-declining-balance.

2. Assuming that the machine was used directly in the production of one of the products that the company manufactures and sells what factors might management consider in selecting a preferable depreciation method in conformity with the matchingprinciple?

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Method: Depreciation Accumulated Net Year Computation Expense Depreciaton ook Value At acquisition etc.