Depreciation Methods

On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $130,000, and its estimated useful life was four years or 1,250,000 cuttings, after which it could be sold for $5,000.

Required

a. Calculate each years depreciation expense for the machine's useful life 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 cuttings of 310,000; 460,000; 380,000; and 100,000.)

1. Straight-Line

Year	Depreciation Expense
2015	Answer
2016	Answer
2017	Answer
2018	Answer

2. Double-declining balance

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

3. Units of Production

Year	Depreciation Expense
2015	Answer
2016	Answer
2017	Answer
2018	Answer

b. Assume that the machine was purchased on July 1, 2015. Calculate each years depreciation expense for the machine's useful life 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

2. Double-declining balance (Round answers to the nearest whole number, when appropriate.)

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