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E9-6 Computing Depreciation under Alternative Methods (LO 9-3] Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $22,000.

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E9-6 Computing Depreciation under Alternative Methods (LO 9-3] Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $22,000. The estimated useful life was five years and the residual value was $2,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units: year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Reg 2A Req 28 Complete a depreciation schedule for Straight-line method. (Do not round Intermediate calculations.) Income Statement Balance Sheet Depreciation Accumulated Expense Depreciation Book Value At acquisition 1 2 Year Cost 3 4 5 E9-6 Computing Depreciation under Alternative Methods (LO 9-3] Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $22,000. The estimated useful life was five years and the residual value was $2,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units: year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units. Required: 1. Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production 2. Which method will result in the highest net income in year 2? Does this higher net income mean the machine was used more efficiently under this depreciation method? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2A Req 28 Complete a depreciation schedule for Units-of-production method. (Do not round intermediate calculations.) Income Statement Depreciation Expense Balance Sheet Accumulated Depreciation Year Cost Book Value At acquisition 1 2 3 5

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