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 $260,700 and was estimated to have a useful life of six years or 700,000 cuttings, after which it could be sold for $26,400.

Required

a. Calculate each years 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.)

1. Straight-Line Year Depreciation Expense 2015 2016 2017 2018 2019 2020

2. Double-declining balance Year Depreciation Expense 2015 2016 2017 2018 2019 2020

3. Units of Production Year Depreciation Expense 2015 2016 2017 2018 2019 2020

b. Assume that the machine was purchased on September 1, 2015. Calculate each years depreciation expense for the period 2015-2020 under each of the following depreciation methods:

1. Straight-line.

2. Double-declining balance.

1. Straight-Line Year Depreciation Expense 2015 2016 2017 2018 2019 2020 2021

2. Double-declining balance Year Depreciation Expense 2015 2016 2017 2018 2019 2020 2021