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2. Assuming that the machine was used directly in the product the company manufactures and sells, what factors might managem able depreciation method in conformity
2. Assuming that the machine was used directly in the product the company manufactures and sells, what factors might managem able depreciation method in conformity with the expense reco oduction of one of the ice cream products that It management consider in selecting a prefer- nse recognition principle? E8-10 LO8-3 Computing Depreciation under Alternative Methods Strong Metals Ine. purchased a new stamping machine at the beginning of The estimated residual value was $50.000 Acume that the estimated user estimated productive life of the machine was 300.000 units. Actual the machine was 300,000 units. Actual annual production was as follows. inning of the year at a cost of $950,000. imated useful life was five years and the Year Units 70,000 67,000 50,000 73.000 40,000 Required: 1. Complete a separate depreciation schedule for each of the alternative methods. Round your ans to the nearest dollar a. Straight-line. b. Units-of-production (use two decimal places for the per unit output factor), c. Double-declining-balance. Method: Year Computation Depreciation Expense Accumulated Depreciation Net Book Value At acquisition 2 etc. 2. Assuming that the machine was used directly in the production of one of the products that the com- nany manufactures and sells, what factors might management consider in selecting a preferable de ciation method in conformity with the expense recognition (matching) principle
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