Depreciation Methods On January 2, 2018, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $437,400 and was estimated to have a useful life of six years or 781,200 platings, after which it could be sold for $46,800. Required a. Calculate each year's depreciation expense for the period 2018-2023 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; 150,000; 125,000; 95,000; and 91,200.) Note: Round answers to the nearest whole number. Note: Round answers to the nearest whole number. 1. Straight-Line Depreciation Year Expense 2018 $ 65,100 2019 65,100 2020 65,100 2021 65,100 2022 65,100 2023 65,100 2. Double-declining balance Year 2018 $ Depreciation Expense OX 2019 2020 2021 2022 2023 Ox 2. Double-declining balance Depreciation Year Expense 2018 $ OX 2019 0 x 2020 0x 2021 0* 2022 2023 X 3. Units of Production Depreciation Year Expense 2018 $ 70,000 2019 90,000 2020 75,000 2021 62,500 2022 47,500 2023 45,600 b. Assume that the machine was purchased on September 1, 2018. Calculate each year's depreciation expense for the period 2018- 2024 under each of the following depreciation methods: 1. Straight-line. 2. Double-declining balance. Note: Round answers to the nearest whole number. 1. Straight-Line Depreciation Year Expense 2018 $ OX 2019 Ox 2020 2021 OX 2022 2023 0x 2024 2. Double-declining balance Depreciation Year Expense 2018 $ OX 2019 0 X x 0 X 2020 2021 0 X x 2022 OX 2023 OX 2024 0 x X Check Depreciation Methods On January 2, 2018, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $437,400 and was estimated to have a useful life of six years or 781,200 platings, after which it could be sold for $46,800. Required a. Calculate each year's depreciation expense for the period 2018-2023 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; 150,000; 125,000; 95,000; and 91,200.) Note: Round answers to the nearest whole number. Note: Round answers to the nearest whole number. 1. Straight-Line Depreciation Year Expense 2018 $ 65,100 2019 65,100 2020 65,100 2021 65,100 2022 65,100 2023 65,100 2. Double-declining balance 0 x Depreciation Year Expense 2018 $ OX 2019 2020 OX 2021 0 x 2022 2023 OX 0 x 2. Double-declining balance Depreciation Year Expense 2018 $ 0 X 2019 OX 2020 0x 2021 0 x 2022 2023 X 3. Units of Production Depreciation Year Expense 2018 $ 70,000 2019 90,000 2020 75,000 2021 62,500 2022 47,500 2023 45,600
