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2 . Assuming that the machine was used directly in the production of one of the ice cream products that the company manufactures and sells,
Assuming that the machine was used directly in the production of one of the ice cream products that the company manufactures and sells, what factors might management consider in selecting a preferable depreciation method in conformity with the expense recognition principle? Computing Depreciation under Alternative Methods Strong Metals Inc, purchased a new stamping machine at the beginning of the year at a cost of $ The estimated residual value was $ Assume that the estimated useful life was five years and the estimated productive life of the machine was units. Actual annual production was as follows: Required: Complete a separate depreciation schedule for each of the alternative methods. Round your answers to the nearest dollar. a Straightline. b Unitsofproduction use two decimal places for the per unit output factor c Doubledecliningbalance. 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 expense recognition matching principle?
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