On January 2, 2013, Half, Inc , purchased a manufacturing machine for $864,000 The machine has an eight year estimated life and a $144,000 estimated salvage value Half expects to manufacture 1,800,000 units over the machines life During 2014, Half manufactured 300,000 units Required For each item, ...

The table below shows the amount of depreciation expense in 2014 under each method Computations are ...

On January 2, 2013, Half, Inc., purchased a manufacturing machine for $864,000. The machine has an eight-year

Question:

On January 2, 2013, Half, Inc., purchased a manufacturing machine for $864,000. The machine has an eight-year estimated life and a $144,000 estimated . Half expects to manufacture 1,800,000 units over the machine’s life. During 2014, Half manufactured 300,000 units.

Required:
For each item, calculate depreciation expense for 2014 (the second year of ownership) for the machine just described under each method listed below:
1. Straight-line
2. Double-declining balance
3. Sum-of-the-years’ digits
4. Units-of-production

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...