On January 2, 2012, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $218,700 and was estimated to have a useful life of six years or 700,000 platings, after which it could be sold for $23,400.

Required

a. Calculate each year's depreciation expense for the period 2012-2017 under each of the following depreciation methods:

Straight-line

Double-declining balance.

Units-of-production. (Assume annual production in platings of

140,000

180,000

100,000

110,000

80,000

90,000

b. Assume that the machine was purchased on September1, 2012. Calculate each year's depreciation expense for the period 2012-2018 under each of the following depreciation methods;

Straight-line

Double-declining balance.