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b. Units-of-production. PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $18,650. The estimated useful life was five years,
b. Units-of-production. PlasticWorks Corporation bought a machine at the beginning of the year at a cost of $18,650. The estimated useful life was five years, and the residual value was $2,950. Assume that the estimated productive life of the machine is 15,700 units. Expected annual production was: year 1, 4,900 units; year 2, 4,900 units; year 3, 2,950 units; year 4, 1,570 units; and year 5, 1,380 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. (Enter all values as positive amount.) c. Double-declining-balance. 2-a. Which method will result in the highest net income in year 2 ? Straight-line Units-of-production Double-declining-balance 2-b. Does this higher net income mean the machine was used more efficiently under this depreciation method? No Yes
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