A10-11 Identify and Recalculate Depreciation: Beans Company purchased a special machine at a cost of $81,000 plus provincial sales tax of $6,480 (non- recoverable). Component parts are not significant and need not be recognized and depreciated separately. The machine is expected to have a residual value of $6,000 at the end of its service life. To assist in preparing the journal entries for depreciation of this machine, your assistant prepared the following spreadsheet: BEANS COMPANY $87,480 6,000 Cost of asset Asset's residual value Years of service life Output in units 4 Year 1 Year 2 Year 3 1,400 1,300 1,000 Year 4 1,100 Total expected output 4.800 1 Method 1 Method 2 Method 3 Depreciation Accumulated Depreciation Accumulated Depreciation Accumulated Year Expense Depreciation Expense Depreciation Expense Depreciation $21,870 $21,870 $27,265 $27,265 $21.870 $21,870 16,403 38,273 25,318 52,583 21,870 43,740 3 12,302 50,575 19,475 72,058 21,870 65.610 4 36,905 87,480 21,422 21,870 87,480 Total $87.480 $93,480 $87,480 2 93,480 The spreadsheet includes statistics relating to the machine and calculates depreciation using three different Page 637 methods-productive-output, straight-line, and declining balance at a 50% rate. However, due to some carelessness, your assistant made at least one error in the calculations for each method. Required: 1. Identify which method is the: a. Productive-output method b. Straight-line method c. Declining-balance method (50% rate) 2. Describe the error(s) made in the calculations for each method. 3. Recalculate depreciation expense for Year 2 under each method