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How to calculate the costs? Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful

How to calculate the costs?

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Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. 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. (Do not round intermediate calculations.) a. Straight-line ncome Statement Depreciation Expense Balance Sheet Accumulated Depreciation Year Cost Book Value $ 25,000 16,200 At acquisition 4,400 4.400 4,400 4,400 4,400 4,400 25,000 20,600X 16,200X 11,800X 7,400X 8800 , 13, 2000 11,800 4 22,000 3,000 b. Units-of-production. ncome Balance Sheet Statement Depreciation Expense Accumulated Depreciation Year Cost Book Value At acquisition $ 25,000 4,400 11.000 15.400 19, 800 22.000 4.400 25,000/5 20,600X 14,000X 9,600X 5,200X 20,600 14,000 4,400 4,400 2.200 4 5.200 3,000

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