On October 1, 2018, the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000 units during its life.
Required:
Calculate depreciation for 2018 and 2019 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Round all computations to the nearest dollar.
1. Straight line
2. Sum-of-the-years'-digits
3. Double-declining balance
4. One hundred fifty percent declining balance
5. Units of production (units produced in 2018, 10,000; units produced in 2019, 25,000)