Alexa Plastics Company purchased a new stamping machine at the beginning of the year at a cost

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Alexa Plastics Company purchased a new stamping machine at the beginning of the year at a cost of \(\$ 125,000\). The estimated residual value was \(\$ 15,000\). 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:image text in transcribed

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

a. Straight-line

b. Units-of-production

c. Double-declining-balanceimage text in transcribed

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 matching process?

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Financial Accounting

ISBN: 9780070001497

4th Canadian Edition

Authors: Patricia A. Libby, Daniel Short, George Kanaan, Maureen Libby Gowing, Robert Libby

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