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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 $240,000, and its estimated useful life was four years or 1,000,000 cuttings, after which it could be sold for $15,000. Estimated annual production in cuttings Year 1 Year 2 Year 3 Year 4 200,000 350,000 260,000 190,000 Calculate the depreciation expense for each year of the machine's useful life under each of the following depreciation methods. Do not round intermediate calculations. Round final answer to the nearest dollar.. a. Straight-line $ b. Double-declining balance $ c. Units of production $ Year 1 56,250 $ 0 $ 45,000 $ Year 2 56,250 $ 0 $ 78,750 $ Year 3 56,250 $ 0 $ 58,500 $ Year 4 56,250 $ 0 $ 42,750 $ Total 225,000 0 225,000
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