Depreciation Methods

On January 2, 2018, Skyler, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $120,000, and its estimated useful life was four years or 920,000 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 200,000; 350,000; 260,000; and 110,000.)

1. Straight-Line

Year	Depreciation Expense
2018
2019
2020
2021

2. Double-declining balance

Year	Depreciation Expense
2018
2019
2020
2021
2022

3. Units of Production

Year	Depreciation Expense
2018
2019
2020
2021

b. Assume that the machine was purchased on July 1, 2018. 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
2018
2019
2020
2021
2022

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

Year	Depreciation Expense
2018
2019
2020
2021
2022