On January 1, 2014, Lavy Factory of Moncton installed a new machine at a cost of $117,000. Its estimated residual value at the end of its estimated life of four years is $9,000. The machine is expected to produce 90,000 units with the following production schedule:
◆ 2014: 11,000 units
◆ 2016: 11,000 units
◆ 2015: 9,000 units
◆ 2017: 59,000 units
Complete amortization schedules for
a. Straight-line.
b. Units-of- production.
c. Double-declining-balance at twice the straight-line rate.
d. Sum-of-the-years’-digits (optional) methods.