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At the beginning of the year, Palermo Brothers, Incorporated, purchased a new plastic water bottle-making machine at a cost of $44,000. The estimated residual value

At the beginning of the year, Palermo Brothers, Incorporated, purchased a new plastic water bottle-making machine at a cost of $44,000. The estimated residual value was $5,000. Assume that the estimated useful life was four years and the estimated productive life of the machine was 390,000 units. Actual annual production was as follows:

Year Units
1 117,000
2 85,800
3 107,250
4 79,950

Required:

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

  1. Straight-line.
  2. Units-of-production.
  3. Double-declining-balance.

Complete this question by entering your answers in the tabs below.

  • Req 1A
  • Req 1B
  • Req 1C

Complete a depreciation schedule using the straight-line method.

Year Depreciation Expense Accumulated Depreciation Net Book Value
At acquisition
1
2
3
4

Complete this question by entering your answers in the tabs below.

  • Req 1A
  • Req 1B
  • Req 1C

Complete a depreciation schedule using the units-of-production method.

Note: Use two decimal places for the per unit output factor.

Year Depreciation Expense Accumulated Depreciation Net Book Value
At acquisition
1
2
3
4

Complete this question by entering your answers in the tabs below.

  • Req 1A
  • Req 1B
  • Req 1C

Complete a depreciation schedule using the double-declining-balance method.

Year Depreciation Expense Accumulated Depreciation Net Book Value
At acquisition
1
2
3
4

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