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On January 2, 2015, Alvarez Company purchased an electroplating machine to help manufacture a part for one of its key products. The machine cost $218,700

On January 2, 2015, 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 cuttings, after which it could be sold for $23,400.

Required

a. Calculate each years depreciation expense for the period 2015-2020 under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line. 2. Double-declining balance. 3. Units-of-production. (Assume annual production in platings of: 140,000; 180,000; 100,000; 110,000; 80,000; and 90,000.)

1. Straight-Line

Year Depreciation Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer
2020 Answer

2. Double-declining balance

Year Depreciation Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer
2020 Answer

3. Units of Production

Year Depreciation Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer
2020 Answer

b. Assume that the machine was purchased on September 1, 2015. Calculate each years depreciation expense for the period 2015-2020 under each of the following depreciation methods: 1. Straight-line. 2. Double-declining balance.

1. Straight-Line

Year Depreciation Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer
2020 Answer
2021 Answer

2. Double-declining balance

Year Depreciation Expense
2015 $Answer
2016 Answer
2017 Answer
2018 Answer
2019 Answer
2020 Answer
2021 Answer

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