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On January 2, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products.
On January 2, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $130,000, and its estimated useful life was four years or 1,250,000 cuttings, after which it could be sold for $5,000. Required a. Calculate each year's depreciation expense for the machine's useful life 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 cuttings of 310,000;460,000; 380,000; and 100,000.) 1. Straight-Line 2. Double-declining balance 3. Units of Production b. Assume that the machine was purchased on july 1. Calculate each year's depreciation expense for the machine's useful life under each of the following depreciation methods: 1. Straight-line. 2. Double-declining balance. 1. Straight-Line 2. Double-declining balance (Round answers to the nearest whole number, when appropriate.)
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