Exercise 9-6 Alternative depreciation methodsstraight-line, double-declining-balance, and units-of production

LO2

CHECK FIGURES: b. 2019 = $37,550; c. 2020 = $36,890

On January 2, 2018, Archer Company, a skateboard manufacturer, installed a computerized machine in its

factory at a cost of $150,200. The machine's useful life was estimated at four years or a total of 186,000 units

with a $20,000 trade-in value. Archer Company's year-end is December 31. Calculate depreciation for each

year of the machine's estimated useful life under each of the following methods:

a. Straight-line

b. Double-declining-balance

c. Units-of-production, assuming actual units produced were:

Year 2018 2019 2020 2021

Units 38,40041,300 52,700 57,000