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Depreciation Methods On January 2, 2015, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The
Depreciation Methods On January 2, 2015, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $218,700 and was estimated to have a useful life of six years or 700,000 cuttings, after which it could be sold for $23,400. Required a. Calculate each year's depreciation expense for the period 2015-2020 under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line. 2. Double-declining balance. 3. Units-of-production. (Assume annual production in platings of: 140,000; 180,000; 100,000; 110,000; 80,000; and 90,000.)
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