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At the beginning of the year, Palermo Brothers, Inc., purchased a new plastic water bottle making machine at a cost of $72,000. The estimated residual

At the beginning of the year, Palermo Brothers, Inc., purchased a new plastic water bottle making machine at a cost of $72,000. The estimated residual value was $8,000. Assume that the estimated useful life was four years, and the estimated productive life of the machine was 640,000 units. Actual annual production was as follows:

Year Units
1 192,000
2 140,800
3 176,000
4 131,200

Required:

1. Complete a separate depreciation schedule for each of the alternative methods.

a. Straight-line.

b. Units-of-production.

c. Double-declining-balance.

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