Cullumber Limited purchased a machine on account on April 2, 2018, at an invoice price of $330,810. On April 4, it paid $2,120 for delivery of the machine. A one-year, $3,960 insurance policy on the machine was purchased on April 5. On April 18, Cullumber paid $7,640 for installation and testing of the machine. The machine was ready for use on April 30. Cullumber estimates the machines useful life will be five years or 6,207 units with a residual value of $81,070. Assume the machine produces the following numbers of units each year: 930 units in 2018; 1,408 units in 2019; 1,526 units in 2020; 1,263 units in 2021; and 1,080 units in 2022. Cullumber has a December 31 year end.

1. Determine the cost of the machine.

2. Calculate the following from 2018-2023:

Depreciable Cost, Depreciation Expense, Accumulated Depreciation, Carrying Amount

For: (a) Straight-line method

(b) Double diminishing balance method

(c) Units of production method

3. Which method causes net income to be lower in the early years of the assets life?