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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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