On January 1, 2016, the Allegheny Corporation purchased machinery for $156,000. The estimated service life of the machinery is 10 years and the estimated residual value is $13,000. The machine is expected to produce 220,000 units during its life.

Required:

Calculate depreciation for 2016 and 2017 using each of the following methods. (Do not round intermediate calculations.)

1.

Straight line.

Choose Numerator:	/	Choose Denominator:	=	Annual Depreciation Expense
	Cost minus Salvage	/	Estimated Useful Life (years)	=	Depreciation Expense
	$143,000	/	10	=	$14,300
	Depreciation Expense
2016
2017	$14,300

2.

Sum-of-the-years' digits.

Sum-of-the-years' digits depreciation
	Depreciable Base	x	Rate per Year	=	Depreciation Expense
2016	$143,000	x	10/55	=	$26,000
2017	$143,000	x	9/55	=	$23,400

3.

Double-declining balance.

Depreciation for the Period			End of Period
Annual Period	Beginning of Period Book Value	Depreciation Rate	Depreciation Expense	Accumulated Depreciation	Book Value
2016		%
2017		%

4.

One hundred fifty percent declining balance.

Depreciation for the Period			End of Period
Annual Period	Beginning of Period Book Value	Depreciation Rate	Depreciation Expense	Accumulated Depreciation	Book Value
2016		%
2017		%

5.

Units of production (units produced in 2016, 46,000; units produced in 2017, 41,000). (Round "Depreciation per unit rate" answers to 2 decimal places.)

elect formula for Units of Production Depreciation:
Calculate 2016 depreciation expense:
Depreciation per unit rate
Units produced in 2016	46,000
Depreciation in 2016
Calculate 2017 depreciation expense:
Depreciation per unit rate
Units produced in 2017	41,000
Depreciation in 2017