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 $250,500 and was estimated to have a useful life of six years or 700,000 cuttings, after which it could be sold for $25,500.

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	$Answer
2016	Answer
2017	Answer
2018	Answer
2019	Answer
2020	Answer

2. Double-declining balance

Year	Depreciation Expense
2015	$Answer
2016	Answer
2017	Answer
2018	Answer
2019	Answer
2020	Answer

3. Units of Production

Year	Depreciation Expense
2015	$Answer
2016	Answer
2017	Answer
2018	Answer
2019	Answer
2020	Answer

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	$Answer
2016	Answer
2017	Answer
2018	Answer
2019	Answer
2020	Answer
2021	Answer

2. Double-declining balance

Year	Depreciation Expense
2015	$Answer
2016	Answer
2017	Answer
2018	Answer
2019	Answer
2020	Answer
2021	Answer